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 in charting tools and trading platforms because it helps traders figure out whether a stock is moving decisively or just bouncing around without real momentum. ADX ranges from 0 to 100—higher numbers mean a stronger, more reliable trend, while lower numbers suggest the price is choppy and unpredictable. For example, if TechCorp stock is climbing steadily with an ADX of 65, that's a strong uptrend worth watching; but if it's at 25, the price might just be wiggling sideways. Think of ADX as a confidence meter for trends: it doesn't tell you which direction to bet, just whether the move is real or fake.
Updated August 1, 2026.