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Average Directional Movement Index (ADX)

Topics: Technical Indicators

Average Directional Movement Index (ADX) is one of technical indicator used in forex technical analysis by many traders. This indicator developed by J. Welles Wilder to determine price trend forces.

The scale for the DMI is from 0 to 100. The average directional movement index (ADX) is a moving average of the DMI.

It was developed and described in detail by Welles Wilder in his book “New concepts in technical trading systems”.

Average Directional Movement Index

Related Articles

From Investopedia
An indicator developed by J. Welles Wilder for identifying when a definable trend is present in an instrument. That is, the DMI tells whether an instrument is trending or not. (full article)

From Metaquotes
Average Directional Movement Index Technical Indicator (ADX) helps to determine if there is a price trend. (full article)

From Forexrealm
The Average Directional Index, or ADX, was developed by J. Welles Wilder to determine trend forces, whether the trend will grow on or will gradually lose its positions. This indicator lets analyze the market tendencies and make trading decisions in the Forex market. (full article)

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