The ADX indicator measures the strength of a trend. A high value of the ADX indicator means that the trend is strong and a low value of the ADX indicator means that the share price moves sideways, neither up nor down.
The ADX indicator can be calculated for different time periods, the ADX indicator can be calculated for 10 days, 20 days or 200 days for example. The more observations that are included in the ADX indicator, the less sensitive the ADX indicator is for stock price changes.
adx, indicator, technical analysis