Average Directional Index

Business, Legal & Accounting Glossary

Definition: Average Directional Index

Average Directional Index

Full Definition of Average Directional Index

ADX. An indicator used in technical analysis that shows strength of a trend. It smoothes the difference between the negative directional indicator (-DI) and positive directional indicator (+DI), and is on a scale of 0 to 100. Index values above 40 indicate that the particular trend is strong, while values less than 20 indicates that a trend is weak and that an investor should not use a trend following system. The index only shows the strength of the trend, not whether or not it is trending upwards or downwards.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Average Directional Index. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
December 07, 2021 https://payrollheaven.com/define/average-directional-index/.
Chicago Manual of Style (CMS):
Average Directional Index. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/average-directional-index/ (accessed: December 07, 2021).
American Psychological Association (APA):
Average Directional Index. PayrollHeaven.com. Retrieved December 07, 2021
, from PayrollHeaven.com website: https://payrollheaven.com/define/average-directional-index/

Definition Sources

Definitions for Average Directional 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: 14th November, 2021 | 0 Views.