Level 3: Technical ToolkitInteractive
ADX: Measuring Trend Strength
18 min readUpdated Mar 2026
Quick Check
ADX below 20 suggests:
+DI and -DI measure:
ADX below 20 suggests:
+DI and -DI measure:
Most indicators tell you trend direction. ADX tells you how strong the trend is, regardless of direction. Strategies that work in strong trends fail in ranges. ADX answers: "Is this stock trending, or wandering?"
ADX does not tell you UP or DOWN, only that a directional trend exists.
ADX turning up from below 20 = a new trend emerging from consolidation. Combined with a +DI/-DI crossover, this identifies the start of large moves.
Simplest ADX Rule
Check ADX before any trade. If below 20 and your strategy is trend-based, skip it, no matter how good the price chart looks. This filter eliminates a large share of losing trades.
Key Takeaways
Try This
Add ADX (14-period) to a daily chart. What is the current reading? Is the stock trending (above 25) or range-bound (below 20)? Does your strategy match the current market condition?
Use Swingfolio to filter your trade ideas by trend strength and focus on high-probability setups.
Start Tracking FreeDisclaimer
This educational content is for informational purposes only and does not constitute financial advice. Past performance is not indicative of future results. Trading involves risk of loss. You should consult a qualified financial advisor before making investment decisions. Swingfolio is a trade journaling tool, not a financial advisory service.