Trend

Average Directional Index

ADX

Measures how strong the current trend is on a 0–100 scale, regardless of direction, by comparing smoothed directional movements to the true range. Readings above 25 suggest a strong trend; the +DI and -DI lines show whether bulls or bears are in control.

Tips

ADX below 20 means the market is ranging; avoid trend-following strategies and favor mean-reversion setups

A rising ADX only means the trend is strengthening; check +DI vs -DI to know if it is bullish or bearish

Parameters

Period

2 - 100