Average Directional Index

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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.


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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.