Average Directional Movement Index (ADX)
Description
Average Directional Movement Index (ADX) is a technical indicator used to measure the strength of a trend. Used in conjunction with the plus directional indicator and minus directional indicator, which help to identify the direction of the trend.
ADX is calculated using a formula that includes both directional indicators. Values typically ranging from 0 to 100. A high ADX value indicates a strong trend and vice versa.
ADX can be used to help traders identify the strength of a trend in a particular crypto's price. If the ADX is showing a strong trend and the plus is above the minus, it may indicate that the price is trending upwards.
ADX is a lagging indicator, meaning it is based on past price action and may not be as useful in predicting future price movements. It is best to use the ADX in combination with our other tools to make informed decisions.
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