ADX (Average Directional Index)
Measures how strong a trend is, whatever its direction.
Technical indicators
Live NSE examples below
What is ADX?
The Average Directional Index, another Wilder invention, answers a question most indicators skip: is there a trend at all? ADX rises when price moves persistently in one direction, up or down, and falls in choppy markets. Its two companion lines, +DI and −DI, show which direction is winning.
Formula
+DM = today's high − yesterday's high (if larger than the down-move, else 0)
−DM = yesterday's low − today's low (if larger than the up-move, else 0)
+DI = 100 × Wilder avg(+DM, 14) ÷ ATR(14); −DI likewise
DX = 100 × |+DI − −DI| ÷ (+DI + −DI)
ADX = Wilder avg(DX, 14)
How to read it
- ADX above 25 means a trending market; below 20 a range. Trend-following tools work best above 25, oscillators below 20.
- +DI above −DI with a rising ADX is a strengthening uptrend.
- A very high ADX (above 40-50) that starts falling often marks a trend that is tiring, even while price still rises.
Common mistakes
- Reading ADX as bullish or bearish. A high ADX can be a strong downtrend; the DI lines give direction.
Live: NSE stocks matching this today
Stocks in strong trends (ADX > 25) 411
| Stock | Change % | ADX (14) | +DI (14) |
|---|---|---|---|
| GMMPFAUDLRGMM Pfaudler Limited | +2.74% | 65.91 | 51.26 |
| BODALCHEMBodal Chemicals Limited | +3.39% | 62.67 | 53.84 |
| GKSLGujarat Kidney And Super Speciality Limited | +1.08% | 62.06 | 31.44 |
| TNPETROTamilnadu PetroProducts Limited | +3.67% | 59.77 | 29.08 |
| VENKEYSVenky's (India) Limited | -0.39% | 59.71 | 26.85 |
| WSTCSTPAPRWest Coast Paper Mills Limited | -1.05% | 57.76 | 35.80 |
| INDORAMAIndo Rama Synthetics (India) Limited | +17.02% | 57.51 | 44.98 |
| RSLRajputana Stainless Limited | +9.20% | 57.42 | 32.92 |
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Related concepts
SuperTrend indicatorA volatility-based trailing line that flips between buy and sell.MACD (Moving Average Convergence Divergence)Trend-following momentum from the gap between a fast and a slow moving average.Moving averages (SMA, EMA, 50 and 200 DMA)The average closing price over a window, used to define the trend.
