Above 25 = a real trend · below 20 = sideways. It does not tell the direction.
The short answer
- What is the Average Directional Index (ADX)?
- Average Directional Index: the average of the directional movement difference, scaled 0–100.
- When does ADX get it wrong?
- Reading it as an uptrend is a common mistake. It measures strength, not direction. Its current reading on platform symbols, at the latest daily close, is in the “Reading now” table on this page. Reading now →
Reading now
| Ticker | Value | Five sessions ago | Status |
|---|---|---|---|
| SPY | 9.02 | 10.69 | No clear trend (below 20) |
| QQQ | 12.99 | 15.69 | No clear trend (below 20) |
| IWM | 39.02 | 37.50 | Strong trend (above 25) |
| DIA | 21.52 | 23.77 | Trend forming (between 20 and 25) |
A description of where the number sits against its thresholds. It is not an entry or exit signal.
Indicator limit
Reading it as an uptrend is a common mistake. It measures strength, not direction.
Read it with
Relative Strength Index: above 25 means an extreme in RSI can last, so it is not read as a reversal.
Answers: does the market have a trend?
What it actually does
The Average Directional Index measures the strength of a trend, not its direction. A rising number means a strengthening trend, whether it is up or down. It is derived from the positive and negative directional indicators, which give the direction, while this one gives the strength.
How it is read in practice
The common convention: below 20 is a market with no trend, above 25 is an established trend, and above 40 is a strong trend that may be nearing exhaustion. Its value is in the classification: it is the filter that tells you which family of strategies suits today, trend following or range trading.
Its smartest use: a gate, not a trigger
Because it carries no direction, it is used as a gate in front of other tools. Trend-following signals are accepted when it is above 25 and rejected below it, and bounce signals are accepted in the range. This cuts the worst trades of each family with one line.
Hypothetical example
A scanner gives ten breakout signals in a session. Filtering them to those where the indicator is above 25 and rising leaves three. Those are the ones that occur in markets that are actually moving, not in ranges that swallow breakouts.
Where it errs and why
It lags by construction (an average of averages). It confirms the trend after it has matured and may peak at its end. A drop does not mean a reversal, only that strength is fading.
Read it with
Read it with the positive and negative directional indicators, which it is derived from and which give the direction it does not carry. Read it with Bollinger Bands, since a squeeze with a low reading describes a quiet market getting ready, twice over. And read it with the gamma environment, which explains mechanically why a market gets held in a range.
Where to see it on the platform
The technical chart shows it below price, and the market regime panel uses trend strength as part of its composite verdict on the environment.
