adx
Function Name: adx
Tags: None
Category: Trend
The Average Directional Index (ADX) measures the strength of a prevailing trend as well as whether or not there is movement or direction in a market.
A rising ADX indicates a strong trend. If the ADX is over 40 and begins to fall, it can signal a slowdown of a current trend.
A falling ADX suggests a non-trending market. A low ADX value (generally less than 20) can indicate a non-trending market with low volatility whereas a cross above 20 may signal the start of a trend (either up or down).
The ADX does not, however, indicate whether a trend is up or down. This indicator can be used to identify non-trending markets, or a deterioration of an ongoing trend. Although market direction is important in its calculation, the ADX is not a directional indicator.
Author: J. Welles Wilder
Link: http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:average_directional_index_adx
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Default Value: 14 | Minimum: 2 | Maximum: 9999 |
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Type: Numeric |