Directional Indicator

/Directional Indicator

Average Directional Index

Average Directional Index The average directional movement index (ADX) was developed in 1978 by J. Welles Wilder is a lagging indicator. It is an indicator of trend strength, it does not indicate the direction of strength. The ADX typically ranges between 0 to 100: the higher the oscillator, the stronger the trend is.  Weak trend: ADX readings below 20 Strong trend: ADX reading above 40 Extremely strong trend: ADX reading above 50. Key payoffs Average directional index (ADX) is a short-term technical indicator that can assist you