TradingCharts

Average Directional Index

Use 25 as the key threshold: ADX above 25 signals a tradeable trend, below 20 signals a range where trend systems should stand aside.

What it does

ADX measures trend strength on a 0 to 100 scale without indicating direction. It is built from two directional movement lines: +DI, based on upward range expansion, and -DI, based on downward expansion, each smoothed over 14 bars. ADX itself is a smoothed average of the difference between the two DIs relative to their sum, so it rises whenever one side clearly dominates, whether the trend is up or down.

Typeoscillatorseparate pane

How to add it

Click Indicators (ƒx) in the header.

Search “Average Directional Index” and click the result.

Hover its legend row and click the gear to open settings.

How traders use it

  • Use 25 as the key threshold: ADX above 25 signals a tradeable trend, below 20 signals a range where trend systems should stand aside.
  • Read direction from the DI lines: +DI above -DI means the trend is up, -DI above +DI means down; DI crossovers can serve as entry triggers when ADX is rising.
  • Filter other systems: only take moving-average or breakout signals when ADX confirms a trending regime.
  • Watch ADX turning down from a high reading (above 40-50): it flags a maturing trend that may consolidate, though not necessarily reverse.
  • A rising ADX during a decline confirms downtrend strength; ADX rising does not mean price is rising.

Inputs

Input Type Default Range / Options
ADX Smoothing number 14 1–200
DI Length number 14 1–200

Plots & styling

Plot Style Default color
ADX line #FF5252

Every plot's color, line width and visibility can be changed on the Style tab. Precision (default 2 decimals), price-scale labels and status-line values are configurable at the bottom of the Style tab.

Reference levels

Level Value
25 25

Level values, colors and line styles are editable in settings.

Tips

  • Merge multiple oscillators into one pane from the legend ⋯ menu to compare them on a shared axis.
  • Double-click the plot to open settings directly, skipping the legend hover.
  • The pane keeps its height in saved layouts, so size it once and it survives reloads.

Watch out for

  • ADX is doubly smoothed and therefore very laggy; it often confirms a trend only after much of the move is done.
  • DI crossovers alone whipsaw badly in quiet markets and need the ADX-above-25 filter.