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ADX

The ADX or Average Directional Movement Index is an indicator that measures the strength of a trend and can be useful to determine if a trend is strong or weak. When the adx indicator gets above 30 then the market for that trading pair is said to be in a strong trend.

The adx indicator does not differentiate bullish and bearish trends, it only tells about the trend strength or  the existence of a trend. When the adx indicator is below 20 the trend is considered to be weak or non-trending, not saying a trader shouldn't take a trade on anything 20 or below, its just a trader should expect the trade will be a very short term trade.

How the ADX appears on a chart..

ADX Indicator


 
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