ADX ≥ 30 + +DI > −DI

Strong uptrend. Trend-following works. Buy pullbacks to 8-EMA or 20-MA. Mean-reversion fades.

ADX ≥ 30 + −DI > +DI

Strong downtrend. Short rallies. Watch for crowded-short squeeze risk when sentiment hits extreme negative.

ADX < 20

Range-bound / chop. Mean-reversion works. Trend strategies fail. Avoid breakout setups — high false-positive rate.