ADX

Average Directional Index: how strongly a price is trending, whichever the direction (0–100).

How to read it

Above about 25 is a trend; below 20 a range.

How to use it

Decide whether to trade a trend (ADX rising above about 25) or a range (below 20).

Limitations

Lags, and reads strength only — use +DI and −DI for the direction.

In Kereon

Charts · Superchart. DI length 14, smoothing 14; reference lines at 20 and 40.

Also called: adx, adx 14, adx14.

Related terms

The whole glossary · Investing tools