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ADX

Also called: Average Directional Index, DMI, Directional Movement Index

The ADX (Average Directional Index, Wilder 1978) measures the strength of a trend from 0 to 100 — never its direction: it rises just as much in a violent sell-off as in a rally. Together with +DI (buying pressure) and −DI (selling pressure), it forms the DMI system; direction is read on the DI duel, strength on the ADX. Standard reading: below 20, no trend (range logic); above 25, tradable trend; beyond 40, strong trend — and the slope matters more than the level. Double-smoothed, it confirms without anticipating. The calculation, strategies (filtered DMI crossover, Holy Grail), and our real-world uses: the complete ADX guide.

See also