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Average Directional Index

   Also found in: Wikipedia 0.01 sec.
Average Directional Index (ADX)

What Does Average Directional Index (ADX) Mean?

The Average Directional Movement Index is used in technical analysis as an objective value for the strength of trend; it is nondirectional so that it will quantify trend strength whether it is up or down. ADX usually is plotted in a chart window along with two lines to create one indicator; it is derived from the relationship of the lines.

Investopedia explains Average Directional Index (ADX)

This analysis is a method of evaluating trend and can help traders identify the strongest trends and show them how to let profits run when the trend is strong.

Related Terms:
Benchmark
Downtrend
Index
Trend Analysis
Uptrend



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