A technical indicator that measures the strength of a trend regardless of its direction. Values above 25 indicate a strong trend, while values below 20 suggest a weak or non-trending market. Developed by J. Welles Wilder, the ADX is typically plotted alongside the +DI and -DI lines, which provide directional information to complement the strength reading.
Example
“The Average Directional Index rose above 40, confirming that the bearish trend was not only intact but gaining strength.”