ADX
ADX
Rates trend strength (not direction) from 0–100; above ~25 means a trend worth trading, below it a range.
How to read it
ADX measures how strong a trend is — not its direction — on a 0–100 scale. A common rule: below 25 the market is ranging (a weak trend); above 25 a trend is present, and a rising ADX means it's getting stronger.
Trading signals
ADX doesn't say which way — pair it with a direction tool. Use it as a filter: take trend-following signals only when ADX is above 25 and rising, and stand aside (or switch to range tactics) when it's low. A peak-and-fall in ADX warns the trend is tiring.
Parameters
ADX Period sets the smoothing window. A shorter period reacts faster to a new trend but is choppier; a longer one is steadier but slower to confirm.
- ADX Period
- Bars over which trend strength is averaged.