Average directional index
Average directional index (ADX) measures trend strength rather than direction, using smoothed comparisons of upward and downward price movement. It ranges from zero to 100 and is often displayed alongside positive and negative directional indicators, which help distinguish the direction of movement.
On a hypothetical chart, ADX rises while prices fall steadily. This indicates strengthening trend conditions, not an upward trend or a guarantee that the decline will continue.
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