ADX Directional Movement Index

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Definition: ADX Directional Movement Index


ADX Directional Movement Index


Full Definition of ADX Directional Movement Index


ADX fluctuates between 0 and 100. Readings below 20 indicate a weak trend or ranging market and readings above 40 indicate a strong trend. ADX does not indicate direction but rather just the strength of the trend, up or down.

Often plotted with ADX are two lines that indicate direction. The lines are +DI and -DI. If the +DI line is above the -DI line, then the trend is considered bullish. Crosses of the +DI and -DI lines generate buy and sell signals. For example, if +DI crosses above -DI, then a buy signal is generated.


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Definition Sources


Definitions for ADX Directional Movement Index are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 30th December, 2021 | 0 Views.