What Is ADX (Average Directional Index)?
Key Takeaways The ADX measures how strong a trend is, not which direction it points, on a scale from 0 to 100. It travels with...
Key Takeaways The ADX measures how strong a trend is, not which direction it points, on a scale from 0 to 100. It travels with two companion lines, +DI and -DI, which supply the bullish or bearish direction that ADX itself leaves out. A reading above roughly 25 signals a trending market worth following, while a low reading warns that trend signals are likely to fail. In This Article Why Trend Strength Matters The Average Directional Index Explained Where ADX Comes From How Does ADX Work?