Category: Trend · Complexity: ★★☆☆☆ (2/5)
Tags: trend, live-overlay, price
Live chart overlay: ADX
Formula
DX = 100·|+DI − −DI| / (|+DI| + |−DI|); ADX = Wilder smooth of DX
How to read
ADX rising through ~25 = trend strengthening. ADX does not say up or down — use +DI/−DI (DMI) for direction.
Limitations
Lags. High ADX can persist after the move is extended. Low ADX is range, not a buy/sell.
Typical settings
14
ADX (Average Directional Index) is part of the ClearPath Encyclopedia of Indicators — 190 models explained with standard SVG illustrations, so you can study an indicator before you put it on a live chart.