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ADX

Type: adx • Category: indicators

Description​

Average Directional Movement Index

Parameters​

NameTypeDescriptionRequiredDefault
dataExpstringprices datano
highstringselect the column with highest pricesno
lowstringselect the column with lowest pricesno
closestringselect the column with closing pricesno
timeperiodnumberNumber of periods to use for ADX calculationno14

Help​

ADX (Average Directional Movement Index)

Description​

The Average Directional Movement Index (ADX) is a technical indicator used in financial analysis to measure the strength of a trend. It is a popular tool used to identify and confirm trends, as well as to determine the strength of a trend.

The ADX indicator is composed of three lines:

  • The ADX line, which measures the strength of the trend
  • The Positive Directional Indicator (+DI) line, which measures the upward price movement
  • The Negative Directional Indicator (-DI) line, which measures the downward price movement

What does this worker do?​

This worker calculates the Average Directional Movement Index (ADX) for a given set of price data. It takes the following parameters:

  • dataExp: prices data
  • high: select the column with highest prices
  • low: select the column with lowest prices
  • close: select the column with closing prices
  • timeperiod: Number of periods to use for ADX calculation

How to interpret the results​

The ADX indicator can be interpreted as follows:

  • A high ADX value (> 25) indicates a strong trend, either up or down.
  • A low ADX value (< 20) indicates a weak or absent trend.
  • A rising ADX line indicates an increasing trend strength, while a falling ADX line indicates a decreasing trend strength.

The +DI and -DI lines can be used to determine the direction of the trend:

  • When the +DI line is above the -DI line, it indicates an upward trend.
  • When the -DI line is above the +DI line, it indicates a downward trend.

Usage​

To use this worker, simply provide the required parameters and it will calculate the ADX indicator for you.

Example usage​

You can use this worker by passing in your price data and selecting the relevant columns.

Visualizing the ADX Indicator​

For a better understanding of how to use the ADX indicator, you can refer to the following images:

Full ADX Indicator Example​

ADX Indicator Full Example

Short ADX Indicator Example​

ADX Indicator Short Example

Additional Information​

The ADX indicator was developed by J. Welles Wilder Jr. and is widely used in technical analysis. It is often used in combination with other indicators to form a trading strategy.

By using the ADX indicator, traders and analysts can gain insights into the strength and direction of a trend, which can help inform investment decisions.