Average Directional Index (ADX) is an oscillator that increases as the strength of a trend increases and decreases as a trend weakens, and is indifferent to the direction of the trend. Usually, as the oscillator decreases below 40 it can signal that a trend is losing momentum and will likely reverse. If the trend starts increasing past 20, then the trend is gaining momentum and will likely continue.
One thing to note is that the oscillator is usually plotted along with two other lines called Directional Movement Indicators (DMI) in which the ADX is derived.
Some of the components that make up the DMIs are each sessions highs and lows and the average range for the sessions as well.
An example is shown below.
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