Drop your number, and we will call you

NIFTY

9343.70      37.10 0.40%

BANK NIFTY

22217.25      162.55 0.74%
ACC 1608.10 (0.05%) Link
Symbol     LTP Chng%
ALLCARGO 195.15   + 8.63
TVSSRICHAK 4173.00   + 7.14
NIITTECH 466.15   + 6.80
MCLEODRUSS 192.00   + 6.37
DCMSHRIRAM 359.00   + 5.59
Symbol     LTP Chng%
SHILPI 165.90    -19.99
ZENSARTECH 832.10    -9.45
ADANIENT 139.75    -6.80
ICICIPRULI 399.60    -4.83
GSPL 188.15    -4.30
View All

Average Directional Index (ADX)

Introduction

ADX is an indicator used in technical analysis as an objective value for the strength of trend. ADX is non-directional indicator, so it will quantify a trend's strength regardless of whether its value is up or down. ADX is usually plotted in a chart window along with two lines known as the DMI (Directional Movement Indicators). ADX is derived from the relationship of the DMI lines.

Analysis of ADX is a method of evaluating trend and can help traders to choose the strongest trends and also how to let profits run when the trend is strong.

Formula

First Adx14 = 14 Period Average of DX
Second Adx14 = ((First Adx14 * 13) + Current DX value) / 14
Subsequent ADX14 = ((Prior ADX14 * 13) + Current DX Value) / 14

Advantage

The Average Directional Index (ADX) is used to measure the strength or weakness of a trend, not the actual direction. Directional movement is defined by +DI and -DI. In general, the bulls have the edge when +DI is greater than - DI, while the bears have the edge when - DI is greater. Crosses of these directional indicators can be combined with ADX for a complete trading system.

Sample Calculation

Technical chart for ADX

Technical Indicators

Our Partners

Fyers-traderguide.in
Zerodha-traderguide.in
Tradejini-traderguide.in
slgroup-traderguide.in
  • For sales: +91 74051 00012

  • For support: +91 74053 00012