Glossary · Pro tools

ADX and directional movement

ADX measures how strong a trend is; +DI and −DI show whether buyers or sellers drive it.

Why it matters

ADX does not say up or down, only how strong the move is. Many trend rules only trade when ADX is above 20 or 25.

How to read it

ADX above 25 means a real trend; under 20 means a range. +DI above −DI means buyers lead.

Also called: DMI, +DI, -DI, directional movement index

Related

AroonHow recently the stock made its 25-day high (Aroon Up) and its 25-day low (Aroon Down).SuperTrendA trailing line set a few average ranges away from the price.

In the Cluenex app, this explanation opens next to every adx and directional movement figure, with the live reading for the stock you are looking at. Open it in Cluenex