Average Directional Index - ADX
Definition of 'Average Directional Index - ADX'An indicator used in technical analysis as an objective value for the strength of trend. ADX is non-directional so it will quantify a trend's strength regardless of whether it is up or down. ADX is usually plotted in a chart window along with two lines known as the DMI (Directional Movement Indicators). ADX is derived from the relationship of the DMI lines.![]() |
|
Investopedia explains 'Average Directional Index - ADX'Analysis of |
Related Definitions
Articles Of Interest
-
Use The Momentum Strategy To Your Advantage
Learn how to use a number of different indicators to know when to make your trading moves. -
Adaptive Price Zone Technical Indicator Explained
In a choppy market, following charts can be extremely difficult - the APZ technical indicator may become your best friend. -
Finding Market Movement With The ADX
Take a closer look at this indicator, which refines your insight into the strength of a prevailing trend. -
ADX: The Trend Strength Indicator
Follow this tool to reduced risk and increase profit potential. -
Does a strong trend (ADX > = 40) cause an increase in volatility?
In technical analysis, there have been numerous indicators invented for identifying trends. One of the most common of these indicators is known as the average directional index (ADX), which is ... -
Trading Without Noise
False signals can drown out underlying trends. Find out how to tone them down and tune them out. -
A Primer On The MACD
Learn to trade in the direction of short-term momentum. -
When To Short A Stock
Learn how to make money off failing shares. -
A Top-Down Approach To Investing
Use a global view to determine which stocks belong in your portfolio. -
Yield Investing: Dividend, Earnings And FCF
There are numerous ways to value investments, and many investors prefer a specific valuation method. Yield investing is one way to value a stock by comparing the current price to various factors. ...

Free Annual Reports