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Average Directional Index (ADX): Definition and Formula

Financial Concepts

Definition

The average directional index (ADX) is a technical analysis indicator used by some traders to determine the strength of a trend. The trend can be either up or down, and this is shown by two accompanying indicators, the negative directional indicator (-DI) and the positive directional indicator (+DI). Therefore, the ADX commonly includes three separate lines. These are used to help assess whether a

In Panel Profits

In the Panel Profits market platform, Average Directional Index (ADX): Definition and Formula applies standard financial concepts principles to comic assets and physical collections.

Common mistakes

Do not infer unobserved prices.