Courses / Trend and Momentum Indicators

ADX and the Directional Movement Index

ADX measures trend strength, not direction.

ADX is derived from the +DI and -DI lines. It rises when a trend is strong, regardless of direction, and falls when the market is ranging. A value above about 25 is often read as a trending market.

The +DI crossing above -DI suggests bullish pressure and the opposite bearish. Use ADX to decide whether to use trend strategies (high ADX) or range strategies (low ADX).

ADX lags, so a rising ADX confirms a trend that has already started.

Key takeaways

• ADX shows trend strength, not direction
• Above about 25 often means trending
• Use it to choose between trend and range strategies

Quiz

• ADX measures: Answer: Trend strength. It shows strength, not direction.
• A low ADX suggests: Answer: A range. Low ADX means weak trend.
• +DI above -DI suggests: Answer: Bullish pressure. Buyers dominate.

Educational content, not financial advice.