ADX — Average Directional Index

What is the ADX indicator?

ADX (Average Directional Index) is a popular technical analysis tool used to measure the strength of a trend.

The indicator does not show direction, only the strength of the current trend — whether bullish or bearish.

It is usually calculated over a 14-period moving average but can be applied on any timeframe.

How to use ADX

ADX ranges from 0 to 100. The higher the value, the stronger the trend.

• ADX below 20 — no trend (range market).
• ADX crossing 20 — a new trend is forming.
• ADX 20–40 — trend confirmation.
• ADX above 40 — strong trend.
• ADX above 50 — very strong trend.
• ADX above 70 — rare extreme trend.

Platform Settings

ADX parameters can be configured by period, threshold, and timeframe. It can be used as an entry signal or as a trend filter.

Strong trend — above 25 | Weak trend — below 25

• Timeframe: recommended from 1h and above.
• Trigger Action: TREND_STRONG or TREND_WEAK.
• ADX Length: default 14 (also 12, 18, 21).
• ADX Threshold: typically 20–26.
• Indicator mode: Cross_only, Trend_Filter, Trend_for_buy.

Advantages and Disadvantages

Combining with Other Indicators

1. ADX + EMA

EMA shows direction, ADX confirms trend strength.

• Logic: ADX filters false EMA crossovers.
• Entry: EMA crosses up + ADX above 25 and rising.
• Exit: ADX declines from high levels.

2. ADX + Oscillators

• ADX < 20: range market — oscillators work best.
• ADX > 30: ignore counter-trend signals.
• Use: entries on pullbacks.

3. ADX + Support/Resistance

• True breakout: ADX rises with breakout.
• False breakout: ADX remains low.

Decision Matrix

Practical Tip

Do not use ADX alone for entries. Use it as a filter:

• Check ADX (is there a trend?).
• Check EMA (direction).
• Use oscillator/pattern for entry timing.