ADX Rating – Trend Strength

Average Directional Index (ADX) is an indicator that measures the strength or weakness of the trend regardless of whether markets are moving up or down

ADX value is calculated over a 14 day period and ranges between 0 to 100. If the stock prices have been falling and the ADX value moves above 25, it indicates that the trend is strengthening and prices will continue to fall. If in a rising market ADX value moves above 25, it indicates continued bullishness. An ADX value below 20 indicates no trend.