ADX (Average Directional Index)

The ADX (Average Directional Index) is a technical indicator that measures how strong a stock's price trend is, regardless of direction. You'll see it in charting tools and trading platforms because it helps traders figure out whether a stock is moving decisively up or down, or just bouncing around without clear direction. The ADX score ranges from 0 to 100—higher numbers mean a stronger, more reliable trend, while lower numbers suggest the stock is stuck in a sideways pattern. For example, if TechCorp stock is climbing steadily with an ADX above 40, that's a strong uptrend worth watching; but if its ADX is below 20, the price movement is weak and unpredictable. It's useful for confirming whether a trend is real or just noise.