What ADX shows
ADX measures how strong a trend is (not its direction); +DI and -DI show which side is stronger.
Indicator guide · Trend
ADX / DMI: what it shows, settings and how to read it.
ADX measures how strong a trend is (not its direction); +DI and -DI show which side is stronger.
How it is calculated
It compares how far each candle pushed above the previous high (+DI) with how far it pushed below the previous low (-DI). ADX is a smoothed measure of the gap between the two, from 0 to 100. It shows strength, not direction.
Usual settings
Length 14. Above 25 is usually read as a trend, below 20 as no trend.
How traders read it
ADX above 25 means a real trend, below 20 means a range. +DI above -DI means buyers lead.
Where it fails
ADX rises late, after the trend has started.
What to combine it with
A direction tool such as a moving average or SuperTrend: ADX says whether to trust it.
Try ADX on a live chart
Sign in, open Genni Charts, press the "ƒx Indicators" button above the chart and choose ADX. Click its name on the chart to change the settings. It is free for every member.
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Questions
Frequently asked questions
What is the ADX indicator?
ADX measures how strong a trend is (not its direction); +DI and -DI show which side is stronger.
What are the best settings for ADX?
The usual settings are: Length 14. Above 25 is usually read as a trend, below 20 as no trend. No setting is best in every market, so test a change on past data before relying on it.
Is ADX reliable on its own?
No single indicator is. ADX rises late, after the trend has started. Most traders use it together with: A direction tool such as a moving average or SuperTrend: ADX says whether to trust it.
How do I add ADX to a chart for free?
Sign in, open Genni Charts, press the "ƒx Indicators" button above the chart and choose ADX. Click its name on the chart to change the settings. It is free for every member.
This page is education, not investment advice. Trading involves substantial risk of loss. Read next: Trading indicators · Trading strategies · Candlestick patterns