What is adX indicator?

The ADX indicator, which varies in value from zero to 100, is the primary momentum indicator. A value over 20 indicates the existence of a trend; a value over 40 indicates a strong trend. Learn about average directional index (ADX) and its indicators, including the calculations for various elements of the ADX technical trading system.

What is the average directional index (ADX)?

The average directional index (ADX) is a technical analysis indicator used by some traders to determine the strength of a trend . The trend can be either up or down, and this is shown by two accompanying indicators, the negative directional indicator (-DI) and the positive directional indicator (+DI).

How is adX plotted?

ADX is plotted as a single line with values ranging from a low of zero to a high of 100. ADX is non-directional; it registers trend strength whether price is trending up or down. The indicator is usually plotted in the same window as the two directional movement indicator (DMI) lines, from which ADX is derived (shown below).

How to get ADX value?

Smooth the results of the periods in order to get your ADX value. The Average Directional Index (ADX), as well as the Negative (-DI) / Positive (+DI) Directional Indicators, are momentum indicators and help investors determine the strength of a trend and trend direction..