ADX above 25: does a strong trend continue?
ADX measures how strong a trend is, not its direction. Above 25 and rising means a trend is under way and gaining strength.
When “ADX above 25 and rising” appeared, NIFTY 200 stocks were higher 12 trading days later 55.9% of the time, against 55.3% after any day: about the same as a random day. The typical size of the move was 5.5%, against 5.4% normally.
| After | Higher | Average move | Median move | Higher after any day |
|---|---|---|---|---|
| 5 trading days | 53.9% | +0.6% | +0.4% | 53.9% |
| 12 trading days | 55.9% | +1.4% | +0.9% | 55.3% |
| 20 trading days | 58.2% | +2.4% | +1.8% | 56.8% |
Year by year
| Year | Signals | Higher after 12 days | Any day |
|---|---|---|---|
| 2021 | 478 | 59.0% | 54.4% |
| 2022 | 939 | 56.0% | 52.1% |
| 2023 | 1120 | 60.4% | 61.3% |
| 2024 | 906 | 51.9% | 53.7% |
| 2025 | 481 | 49.7% | 53.1% |
| Large cap only | 2040 | 55.3% | |
| Mid cap only | 1884 | 56.5% |
What it is
ADX measures how strong a trend is, not its direction. Above 25 and rising means a trend is under way and gaining strength.
How we detected it
ADX (14) is above 25 and higher than three days earlier, after this was not true the day before.
How traders read it
Use ADX to choose your tools: trend signals when ADX is high, range signals when it is low. Check +DI and −DI for the direction.
A signal is a probability, not a promise
Even the most reliable signal in this study was followed by the opposite move 37% of the time. A signal tilts the odds; it doesn’t decide the outcome.
Signals work better when they agree with the trend and with each other. Whatever the signal, decide your stop-loss before you act.
Practise spotting it, free
The ADX chapter teaches this signal in five minutes, then you call real NSE charts and get graded on your reasoning.
Common questions
Does the ADX above 25 and rising signal work on Indian stocks?
When “ADX above 25 and rising” appeared, NIFTY 200 stocks were higher 12 trading days later 55.9% of the time, against 55.3% after any day: about the same as a random day. The typical size of the move was 5.5%, against 5.4% normally. No single signal is reliable on its own; traders combine it with the trend and manage risk with a stop-loss.
How often did stocks rise after this signal?
Across 3,924 signals on 186 NIFTY 200 stocks (2021–2025), the price was higher after 5, 12 and 20 trading days 53.9%, 55.9%, 58.2% of the time. After any day it was 53.9%, 55.3%, 56.8%.
How is “ADX above 25 and rising” defined here?
ADX (14) is above 25 and higher than three days earlier, after this was not true the day before.
How these numbers were made
We ran the same signal detector MarketSeekho uses to grade players over every trading day of 187 NIFTY 200 stocks, Jan 2021 to Oct 2025, using NSE end-of-day prices (1,54,833 stock-days). We counted the first day a signal appeared, then ignored the same signal on the same stock for 12 trading days so results don’t overlap. Windows with splits, bonuses or trading halts were left out.
“Any day” is the baseline: the same measure after every day in the data, signal or not. It matters because 2021–2025 was mostly a rising market, so stocks were higher after 12 days more often than not anyway. Past results don’t predict future ones, and this is not investment advice.