- Start trending, i.e. ADX moves above the Lower line
|Trending (1.0)||When the ADX is above 25 (the lower line)|
|Strong (0.75)||When the ADX is rising and above 20 (4/5 of the lower line)|
|Medium (0.5)||When the ADX is rising and below 20(4/5 of the lower line|
|Weak (0.25)||When the ADX is falling and above 20(4/5 of the lower line|
|No trend (0)||When the ADX is falling and below 20(4/5 of the lower line|
|Period||The number of periods evaluated by the indicator|
|Lines||Lower: the threshold for the strenght signals|
Strong/Extreme: values visible on the indicator and the strength signal box, but no change in signal value
|Plots||The style of the different plots of the indicator|
The ADX indicator does not show you the direction of a trend, but shows you the amount of trending of the price.
In that regard you can compare it with the Choppiness Index.
An ADX value above 25 is regarded as reasonable trending, and a value below 20 as ranging.