ADX (Average Directional Index) - Forex Glossary | ForexCracked
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Indicators & Analysis Intermediate

ADX (Average Directional Index)

Also called: DMI

Measures trend strength on a 0–100 scale — does not indicate direction, only how strongly price is trending.

01

Definition

ADX (Wilder) tells you whether price is trending or ranging. Below 20: weak/range. Above 25: emerging trend. Above 40: strong trend. 50+: very strong.

ADX comes paired with +DI and −DI lines that show direction. ADX rising with +DI above −DI = strong uptrend. Use ADX as a filter: only take trend-following signals when ADX > 20.

02

Example

Your breakout system fires on EUR/USD but ADX is 14 — the pair isn't trending. Skip the trade or tighten the target.