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<p id="isPasted"><strong>Average directional index</strong></p><p>This indicator is based on how strong a trend is, using a scale going up to 100 to measure that strength. Plotted on a graph, an increasing ADX line shows an increasing trend strength, while a falling line shows a decrease in trend strength. In the case of average directional index, a falling line doesn't mean a reverse in trend, only a weakening of the current trend.</p><p>This trend following trading strategy indicator also shows trend momentum, with an increasing number of higher peaks suggesting stronger momentum and lower peaks showing decreasing momentum. This can be a …</p>