Average Directional Index - ADX

Dictionary Says

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.

Average Directional Index (ADX)
Investopedia Says

Investopedia explains 'Average Directional Index - ADX'

Analysis of ADX is a method of evaluating trend and can help traders to choose the strongest trends and also how to let profits run when the trend is strong.

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Related Definitions

  1. Directional Movement Index - DMI

    An indicator ...
  2. Trend

    The general ...
  3. Reversal

    A change in the ...
  4. Indicator

    Statistics used ...
  5. Sideways Trend

    Describes the ...
  6. Uptrend

    Describes the ...
  7. Downtrend

    Describes the ...
  8. Positive Directional Indicator - +DI

    A component of ...
  9. Negative Directional Indicator - -DI

    A component of ...
  10. Risk

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