Resources on Trading with Directional Movement & ADX Below is a list of articles that will give you a deeper understanding of Welles Wilder's Directional Movement trading system and ultimately improve your trading decisions for greater profits. Only the articles, all of which we have read in detail, we deem worthy of your time will appear on this list. A short summary precedes each article with comments we think will help you along the way.     Trader Talk - ADX Basics - This is a very succinct and easy to follow discussion about the basics of the various Directional Movement indicators, how they are derived and how to interpret their meaning. Trader Talk - Using ADX - A good start into interpreting and using the ADX indicator to make trading decisions based on trending values. There are a lot more nuances and subtleties surrounding Directional Movement than this but would be too overwhelming if introduced all at once. This article provides enough information and detail to start you off trading with some limited success. chuck Lebeau, Adx Has It's Limitations - Chuck Lebeau can be considered a true expert who uses Directional Movement and ADX in his daily trading. He has excellent insight into understanding and making use of these indicators. A key idea in this article is the notion of a "basing pattern" preceding a rising ADX resulting in a reliable indication of a trend. A good example of combining chart-reading and ADX trend analysis. chuck Lebeau, ADX for V Tops and V Bottoms - Chuck identifies another ADX trending pattern that can result in profitable trades. This article shows how to identify entry points when stocks turn down at the top or up at the bottom. chuck Lebeau, Frequency of Trading is Critical - A helpful reminder for traders that what we do is trade. Waiting for the perfect trade to set-up will leave you poor. To be profitable, you need a good system that frequently gerenates many trading signals upon which you act on the best "n" signals. Once in the trade, you need to manage your exits and know your stops because your highest priority at that point is preservation of trading capital. chuck Lebeau, Combining RSI and ADX - How to trade profitably by combining Wilder's ADX and RSI indicators. When the RSI has a high value (above 70) the stock is viewed as being overbought - however, to be in this condition, typically, the stock is showing good momentum or trend strength and selling into a strong trend is not what you really want to be doing. In this article, Lebeau offers very clear trading strategies for combing RSI with a flat or declining ADX.