TickAtlas
trend 10 min read Updated 2026-03-21

Average Directional Index (ADX)

The Average Directional Index measures trend strength regardless of direction. It consists of the ADX line (strength), +DI (bullish directional), and -DI (bearish directional). Developed by J. Welles Wilder.

TL;DR

  • ADX is a trend indicator used in technical analysis
  • ADX > 25 indicates a strong trend. ADX < 20 indicates a weak/ranging market. +DI above -DI is bullish; -DI above +DI is bearish.
  • Best timeframes: H1, H4, D1
  • Skip to API docs →

What is Average Directional Index?

The Average Directional Index measures trend strength regardless of direction. It consists of the ADX line (strength), +DI (bullish directional), and -DI (bearish directional). Developed by J. Welles Wilder.

How ADX is Calculated

formula 
ADX = Smoothed average of |+DI - -DI| / (+DI + -DI)

+DI = Smoothed +DM / ATR × 100
-DI = Smoothed -DM / ATR × 100

Default period: 14

How to Interpret ADX

ADX > 25 indicates a strong trend. ADX < 20 indicates a weak/ranging market. +DI above -DI is bullish; -DI above +DI is bearish.

Trading Strategies Using ADX

Strategy 1: ADX Trend Filter

Use ADX to filter trades — only take trend-following signals when ADX confirms a strong trend.

Entry Rules

Only enter trades when ADX > 25. Use +DI/-DI crossover for direction.

Exit Rules

Exit when ADX falls below 20 or when +DI/-DI cross in the opposite direction.

Combining ADX with Other Indicators

ADX works best when combined with complementary indicators:

  • ADX + MACD: Combine for stronger confluence signals
  • ADX + RSI: Combine for stronger confluence signals
  • ADX + Parabolic SAR: Combine for stronger confluence signals

ADX Across Different Timeframes

ADX works across all 7 timeframes but performs best on H1, H4, D1 for most trading styles.

H1 H4 D1

Learn about all 7 timeframes →

Accessing ADX via TickAtlas API

GET https://tickatlas.com/v1/indicator

Python Example

python 
import requests

url = "https://tickatlas.com/v1/indicator"
headers = {"X-API-Key": "YOUR_API_KEY"}
params = {
  "symbol": "EURUSD",
  "indicator": "ADX",
  "timeframe": "H1"
}

response = requests.get(url, headers=headers, params=params)
data = response.json()
print(data)

Sample Response

200 OK 
{
  "symbol": "EURUSD",
  "indicator": "ADX",
  "timeframe": "H1",
  "timestamp": "2026-03-21T14:00:00Z",
  "value": 58.43,
  "signal": "neutral"
}
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Common Mistakes to Avoid

  1. 1

    Confusing ADX direction with price direction — ADX measures trend strength, not direction

  2. 2

    Using ADX alone without +DI/-DI for directional signals

  3. 3

    Expecting ADX to provide timely entry signals — it lags significantly

Frequently Asked Questions

What ADX level indicates a strong trend?

ADX above 25 is generally considered a strong trend. Above 50 is an extremely strong trend. Below 20 is typically a ranging market. These are guidelines, not rigid thresholds.

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