Full formBusiness & Corporate
ADXstands forAverage Directional Index
Full Form of ADX
What is ADX?
The Average Directional Index (ADX) is a technical analysis indicator used to measure the strength of a market trend, regardless of its direction. Developed by J. Welles Wilder, it ranges from 0 to 100, with values above 25 typically indicating a strong trend and values below 20 suggesting a ranging or weak trend. In the Indian stock market, ADX is widely employed by traders on indices like Nifty 50 and Sensex, as well as individual stocks, to filter trading signals and avoid false breakouts. It is commonly used alongside the Directional Movement Indicators (+DI and -DI) to determine trend direction. ADX appears on trading platforms such as Zerodha, Upstox, and TradingView, and is a core topic in technical analysis courses for NISM certifications and stock market exams. While it does not predict price direction, it helps traders decide whether to use trend-following or range-bound strategies. Understanding ADX is essential for aspiring equity researchers and derivatives analysts in India.
ADX का फुल फॉर्म
औसत दिशात्मक सूचकांक
Example
After witnessing a drop in ADX below 20 on the Nifty hourly chart, the trader switched to a mean-reversion strategy instead of trend-following.
ADX — frequently asked questions
What is the full form of ADX?
The full form of ADX is Average Directional Index. It is a technical analysis indicator used to quantify the strength of a trend in financial markets.
How is ADX used in Indian stock trading?
In Indian stock trading, ADX is used to confirm whether a stock or index like Nifty is trending strongly (ADX above 25) or moving sideways (below 20). Traders combine it with +DI and -DI to identify potential entry points.
Is ADX suitable for beginners?
Yes, ADX is beginner-friendly as it gives clear numeric thresholds. However, it should be used with other indicators for better accuracy. Many Indian online brokerages offer free ADX charts for practice.