ADX: Is there a trend at all?
How ADX measures trend strength, why 20 and 25 matter, and how +DI and −DI show direction.
ADX measures how strong a trend is
ADX (Average Directional Index) runs from 0 to 100 and tells you how strong the trend is. It does not tell you the direction. For that, two helper lines show who is pushing.
What to look for
- ADX (black): below 20 means no real trend, above 25 means a strong one.
- +DI (green) is buying pressure, −DI (red) is selling pressure.
- Rising ADX with +DI on top: a strong uptrend.
Use ADX to pick your tools. Trend tools work when ADX is high; range tools like Stochastic work when it is low.
In the first half of the chart ADX stayed below 20. In the second half it climbed above 25. What changed?
- The stock went from no trend to a strong trend
- The stock got cheaper
- Volume dried up
Show the answer
The stock went from no trend to a strong trend. Low ADX means price was going nowhere. When ADX climbed above 25 a real trend took over. The green +DI on top says it was an uptrend.
Strong trends tend to continue
After weeks going nowhere, price broke out and ADX climbed from below 20 to about 52, with +DI above −DI. A rising ADX says the trend has energy, and +DI on top says buyers are the ones pushing.
ADX falling from a high level is the early warning that a trend is getting tired.
Practise ADX, free
Reading about it is step one. In MarketSeekho you see a real NSE chart with the future hidden, call Bull or Bhalu, say why, and get graded on your reasoning, not luck.
Common questions
What is ADX?
ADX (Average Directional Index) runs from 0 to 100 and tells you how strong the trend is. It does not tell you the direction. For that, two helper lines show who is pushing.
What should I look for with ADX?
ADX (black): below 20 means no real trend, above 25 means a strong one. +DI (green) is buying pressure, −DI (red) is selling pressure. Rising ADX with +DI on top: a strong uptrend.
How can I practise reading ADX for free?
MarketSeekho has a free four-page chapter on ADX (learn, answer a question, spot it on a chart, then make a call) and an unlimited ADX practice game graded on your reasoning. No sign-up or money needed.