INDICATOR · BEGINNER GUIDE

ADX / DMI

Answers the question every trader should ask first: is this market trending at all? ADX measures the strength of the trend; +DI and −DI show whether buyers or sellers are pushing.

◆Trend strength 0–100◆Buyers vs sellers◆25 = trending · 20 = no trend◆Trend alerts

ADX / DMI under a 5-minute gold chart: ADX rising above 25 as gold breaks out at the New York open

WHAT YOU SEE · XAUUSD 5m · ADX RISES WITH THE BREAKOUT 123456

1Legend: ADX, +DI and −DI right now.

2The move: gold breaks out at the New York open…

3Gold line (ADX): …and ADX climbs above 25: a real trend. Rising = getting stronger.

4Green line (+DI): buyers. Above the red line = buyers in control.

5Red line (−DI): sellers. Above the green line = sellers in control.

6Levels: 25 = trending, 20 = no real trend (ranging or choppy).

Use it in 5 steps

Add itBasic Indicators → tick ADX / DMI (Trend Strength). It opens in its own panel under the chart.
Trend or no trend?ADX above 25 = trending. Under 20 = ranging: trend tools struggle here.
Which way?Green (+DI) on top = buyers pushing. Red (−DI) on top = sellers pushing.
Strength changingADX rising = the trend is getting stronger. Falling from high = it is tiring.
Get the alerts🔔 Alerts → “trend starting” (ADX above 25), “trend fading” (below 20), buyers or sellers taking over.

What ADX is (and isn’t)

ADX goes up in a strong uptrend and a strong downtrend. It measures strength, not direction.
Direction comes from +DI vs −DI.
Created by J. Welles Wilder in 1978, the same man behind RSI, ATR and Parabolic SAR.
Our AI scanners use it too: Range Radar only calls trades with ADX under 20, and the AI Optimiser shows it in “Conditions”.

Settings: 14 and 14 are Wilder’s originals and what most traders use. Shorter = faster but jumpier.

Good to know

ADX is slow by design: it confirms a trend after it has started.
ADX above 40–50 often means the trend is stretched; watch for it turning down.
DI crosses in a low-ADX market are mostly noise.

Good questions for ✨ Explain

“Is this market trending or ranging?”
“Who is in control, buyers or sellers?”
“Is the trend getting stronger or weaker?”

Golden rules

Trend tools in trends, range tools in ranges.
ADX is a filter, not an entry signal.
Risk 1% or less per trade.

Tip: before taking a trend scanner’s signal, check ADX is above 20 and rising.

For educational purposes only. The results in this guide come from testing on past prices. Past performance does not guarantee future results, and real spreads, slippage and delays can make results worse. Nothing here is financial advice, and trading carries a high risk of losing money. Read the risk warning.