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

 

period
	Default Value: 14  |  Minimum: 2  |  Maximum: 9999
	Type: Numeric