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    Average Directional Movement Index (ADX)
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      Average Directional Movement Index (ADX)

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        Article summary

        Average Directional Movement Index (ADX) is an indicator that measures the overall strength of a trend. Being a component of the Directional Movement System, ADX combines and smooths (by Moving Average) the result of two other indicators: the positive directional indicator (DMI+) and negative directional indicator (DMI-). The indicator line fluctuates in the range from 0 to +100, whereby the readings below 20 indicate trend's weakness, and readings above 40 indicate trend's strength.

        ADX = MAi x [ |DMI(+) - DMI(-)| / (DMI(+) + DMI(-)] x 100

        where:
        MAi – the Moving Average value calculated for the period
        DMI(+) – the positive Direction Movement Index value calculated for the period
        DMI(+) – the negative Direction Movement Index value calculated for the period

        Average Directional Movement IndexAverage Directional Movement Index

        INPUTS

        InputDescription
        LengthThe number of periods the indicator uses to calculate the ADX plot

        To change the input do the following: 

        1. Tap on the numbers to display the slider bar.
        2. Use the slider to change the value and tap on the numbers again to apply.
        3. Swipe left or right or tap the backicon to return to the previous screen.
        Adjusting the input
        Average
        The following Moving Average types are available for calculations:
        • Simple. Simple Moving Average (SMA) is applied to ADX.
        • Wilders. Wilders Smoothing is applied to ADX.
        • Weighted. Weighted Moving Average (WMA) is applied to ADX.
        • Exponential. Exponential Moving Average (EMA) is applied to ADX. 

        PLOTS

        The plot renders the data you are working with on the chart. Each plot has two basic parameters that you can change: color and type.

        PlotDescription
        ADXThe Average Directional Movement Index plot
        Color

        Tap the iconnext to the plot name. Here, you can change a color of the plot. Scroll through the list of available colors, tap the color circle to apply the new color to the plot.

        Color picker

        To create a custom color:

        1. Scroll through the list of colors to the end, tapto open the palette.
        2. Adjust the main color at the upper part of the palette.
        3. Then, use the slider at the bottom to set the opacity of the color if needed.
        4. Tapto apply and save the color or tapto return to parameters.
        5. The custom-created colors are added to the end of the list.

        Palette

        Note: To remove a color, tap and hold the color circle in the Color picker, then select Delete. The currently selected color can't be deleted.
        Type
        The following plot types are available:
        • Linear. The plot is displayed as a line.
        • Column. The plot is displayed as a histogram.
        • Difference. The plot is displayed as a line which represents the difference between High and Low prices of the bar.
        • Points. The plot is displayed as points.
        Note: Tap Reset to return the indicator to the default settings
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