ADX (Average Directional Index)

Indicators

An indicator that measures trend strength on a scale from 0 to 100, without indicating direction. Below 20 suggests a weak or absent trend; above 30 indicates a strong trend. Developed by J. Welles Wilder Jr.

Related Terms

Trend

The general direction of price movement.

Moving Average

A smoothed line that calculates the average price over a specified number of periods.

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ADX: Measuring Trend Strength

Level 3: Technical Toolkit · 18 min

The Holy Grail Strategy (Linda Bradford Raschke)

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