ADX And Measuring Trend Strength
A 1-minute lesson from the MarketPro academy, one of 22 in trading indicators.
The Average Directional Index (ADX) measures how strong a trend is, without indicating which direction that trend is moving — it answers "is there a trend worth following" rather than "which way should I trade." ADX is plotted on a scale typically from 0 to 100, though readings above 50 are uncommon. Low readings (often cited as below 20-25) suggest a weak or absent trend, while higher readings suggest a stronger trend is in place.
The Average Directional Index (ADX) measures how strong a trend is, without indicating which direction that trend is moving — it answers "is there a trend worth following" rather than "which way should I trade."
Interpreting ADX Readings
ADX is plotted on a scale typically from 0 to 100, though readings above 50 are uncommon. Low readings (often cited as below 20-25) suggest a weak or absent trend, while higher readings suggest a stronger trend is in place. ADX is usually paired with two directional lines (+DI and -DI) that indicate which direction currently has the upper hand.
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Lesson 10 of 22 in Trading indicators
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