See the chart below.


Each indicator plays an important role when analyzing the market. In which, ADX will be used as an indicator to determine trend, RSI is an indicator to define momentum, and Bollinger Bands will be used to analyze price movements.

Position 1 (ADX combined with RSI): Before position 1, ADX showed a trending market (ADX increased strongly), RSI also confirmed the momentum increase (ie the trend is strengthening).

Position 2 (ADX combined with Bollinger Bands): ADX started, trend weakened. If we observe resistance at this stage, the trend will be more difficult to break than in the previous period. The price also failed to escape the lower band of the Bollinger Bands.

Position 3 (ADX incorporates Bollinger Bands, RSI). The price moves sideways, the ADX indicator shows that the indicator falls below level 30. Using the Bollinger Bands, combined with a reversal signal on the RSI, you will spot a price reversal zone.