ADX (Average Directional Index)
ADX is a technical indicator that measures how strong a stock's price trend is, regardless of direction. You'll see it on most charting platforms, and traders use it to figure out whether a stock is moving decisively or just bouncing around sideways. It scores from 0 to 100—higher numbers mean a stronger, more reliable trend. For example, if TechCorp stock is climbing steadily with an ADX above 40, that suggests real momentum. But if its ADX is below 20, the price might just be choppy and unpredictable. Think of it as a confidence meter: it tells you whether the trend you're looking at is actually worth paying attention to or just noise.
Updated July 1, 2026.