ADX (Average Directional Index)

ADX is a 0–100 gauge of how strong a trend is (regardless of direction); readings above 25 indicate a strong trend and below 20 a weak, choppy one.

The Average Directional Index (ADX) measures the strength of a trend on a 0-to-100 scale, using Wilder’s 14-day smoothing. Crucially, ADX says nothing about direction — a strong uptrend and a strong downtrend can both produce a high ADX. Two companion lines, +DI and −DI, indicate whether buyers or sellers are in control.

By convention, an ADX above 25 marks a strong, established trend, while below 20 signals a trendless, choppy market where prices are chopping sideways. Traders use it to tell whether trend-following makes sense at all for a given stock right now.

stocks-llm computes the Wilder 14-day ADX (with +DI/−DI) nightly to flag strongly trending and trendless stocks. It describes the character of past price action, not what happens next — informational only.

Strongly trending stocks by ADX →

See more terms in the stocks-llm glossary.

Informational only — NOT financial advice. This is an educational definition, not a recommendation to buy or sell anything. Metrics on stocks-llm are delayed data and may be missing or stale. Always verify information independently and consult a qualified financial professional before making any investment decision.