What is the Average Directional Index?

The Average Directional Index (ADX) indicator reveals the presence of a trend and shows the strength of the trend.

It is presented visually as two opposing lines, +DI and -DI, and the ADX curve:

– the +DI line (blue) shows increases in price;

– the -DI line (yellow) shows decreases in price;

– the ADX line (red) indicates the trend in the market (trend or flat).