Visualization of ADX, +DI, and -DI lines navigating traders through trendy waters. Lighthouse represents the ADX, emphasizing strong trends (25+).

Understanding the Average Directional Index (ADX): Identifying Trend Strength in Financial Markets

Indicators

Introduction to the Average Directional Index (ADX) The Average Directional Index (ADX), developed by Welles Wilder in 1978, is a popular technical indicator among traders used to assess trend strength. The ADX indicator is composed of three lines—the Positive Directional Indicator (+DI), the Negative Directional Indicator (-DI), and the Average

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