Trends/Trend strength and direction

Average directional index

A 0 to 100 number for how strong a trend is, in either direction.

Trend strength and directionBest on 6M, 1YAlso called ADX

Illustration of the average directional index shape. It is a sketch, not real price data.

What it shows

Wilder's ADX measures how strongly price is trending, not which way. It is built from the directional movement lines +DI and −DI. A high ADX means a strong trend in one direction or the other. A low ADX means price is moving sideways.

Readings under 20 are usually called weak and above 25 strong.

How we find it

The same code that draws it on your chart follows these steps, with the same result every time.

Compute +DM and −DM (the bigger of up move or down move).
Smooth with 14 bars and divide by ATR to get +DI and −DI.
DX = |+DI − −DI| ÷ (+DI + −DI) × 100.
ADX = 14-bar smoothed average of DX.

Starting values: Length 14; Lines 20 / 25. These are proposed and will be tuned on real price data before launch.

How to read it

The panel shows ADX.
Dashed lines mark 20 and 25.
A rising line means the trend is getting stronger.

Status labels you may see

Label	What it means
Strong	ADX above 25.
Moderate	ADX between 20 and 25.
Weak	ADX below 20.

What cancels it

Nothing cancels it.

What traders check next

+DI and −DI to see direction.
Whether ADX is rising or falling.
Price trend.

Limits

Says nothing about direction.
Lags.
Wilder's thresholds are conventions.

Try it in forecastviz

Open any ticker and choose Trend strength and direction → Average directional index in the left menu.
Switch between 6M, 1Y to see how the picture changes.
Compare with DI crossover and Aroon on the same chart.

Open on a ticker

Questions

Does a high ADX mean up?

No. It could be a strong fall.

Why does ADX fall in a trend?

When the trend slows, even though price keeps rising.