The indicators that work best with ADX are moving averages, RSI, MACD, and Parabolic SAR, with RSI being the most popular pairing. Moving Averages (MA) are commonly used alongside ADX to determine the direction of a trend.
While ADX confirms the trend strength, RSI can help avoid entering trades when the market is overextended.
For instance, during a strong uptrend indicated by ADX, traders might avoid new entries if the RSI shows an overbought reading above 70.
A bullish MACD crossover paired with an ADX value above 25 indicates a high probability buying opportunity. The Holy Grail strategy combines ADX above 30 with a pullback to a 20 EMA for entries.