ADX: how strong is the trend?

Measures how strong a trend is, not which direction it goes.

Illustration on a made-up price series, not market data. Hypothetical, for education only.

What it measures

ADX (14) is a smoothed average of the gap between upward and downward movement (+DI and -DI), scaled from 0 to 100.

Above about 25 many traders treat the trend as strong, below 20 as weak or sideways.
+DI above -DI means upward movement dominates, -DI above +DI downward.
A rising ADX means the trend is strengthening, whichever way it points.

Reading a high ADX as bullish. A strong downtrend also has a high ADX.

1. What does ADX measure? The direction of the trend. How strong a trend is, not its direction. Trading volume.

2. ADX is high while price is falling. This means ... a strong downtrend. a bullish signal. the trend is over.

3. Above about 25, many traders treat the trend as ... finished. weak. strong.

Run the ADX Trend Strength template and check whether it trades more in trending periods.

Open the app

Educational content. Not investment advice. Past or simulated results do not predict future results.