ADX (Average Directional Index) — what it is and how to use it in trading
Definition
ADX (Average Directional Index) measures trend strength on a scale from 0 upward, but not direction — a separate operand (e.g. an EMA filter) is needed for that.
How it works in the builder
The adx operand takes a period parameter (default 14). Above 25 usually means a strong trending market, where trend-following strategies work best; below 20 means a range, where oscillators tend to work better.
What it looks like on the chart
Drawn as a separate panel, a rising or falling line with no upper bound — compared against fixed levels (usually 20 and 25), not oscillating between two edges like RSI.
Typical use
Typical condition: adx(14) > 25 as a filter to "only enter in a strong trend", usually paired with a trend or momentum indicator that supplies the direction.
Common pitfalls
Since ADX doesn't measure direction, using it alone as a buy or sell condition makes no sense — it only answers "is there a trend", not "which way".
This block is available in the strategy builder
137 no-code blocks — build an entry condition with this term and test it on history
Historical results do not guarantee future ones. The service is an informational and analytical tool, not an individual investment recommendation; trades are not executed.