ADX (Average Directional Index)
A 0–100 gauge of trend strength — not direction — where readings above ~25 suggest a trend worth trading and below ~20 a choppy range.
Also from Wilder, ADX rises when price trends strongly (up or down) and falls when it chops sideways. It says nothing about which way price is going — only how strong the move is.
Traders often pair ADX with a directional method: take trend setups when ADX is high and rising, and avoid or fade them when ADX is low. A rising ADX through 25 is a common 'trend is real' filter.
On StockSetups
ADX is part of the StockSetups indicator set on each signal, helping separate names in a strong, tradable trend from ones still stuck in a range.
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