what is the average directional index adx 
the average directional index adx is a technical analysis indicator used by some traders to determine the strength of a trend the trend can be either up or down and this is shown by two accompanying indicators the negative directional indicator di and the positive directional indicator di therefore the adx commonly includes three separate lines these are used to help assess whether a trade should be taken long or short or if a trade should be taken at all 1average directional index adx formulathe adx requires a sequence of calculations due to the multiple lines in the indicator di smoothed dm atr 100 di smoothed dm atr 100 dx di di di di 100 adx prior adx 13 current adx 14 where dm directional movement current high ph ph previous high dm previous low current low smoothed dm t 1 14 dm t 1 14 dm 14 cdm cdm current dm atr average true range begin aligned text di left frac text smoothed dm text atr right times 100 text di left frac text smoothed dm text atr right times 100 text dx left frac mid text di text di mid mid text di text di mid right times 100 text adx frac text prior adx times 13 text current adx 14 textbf where text dm directional movement text current high text ph text ph text previous high text dm text previous low text current low text smoothed dm textstyle sum t 1 14 text dm left frac sum t 1 14 text dm 14 right text cdm text cdm text current dm text atr text average true range end aligned di atr smoothed dm 100 di atr smoothed dm 100dx di di di di 100adx 14 prior adx 13 current adx where dm directional movement current high phph previous high dm previous low current lowsmoothed dm t 114 dm 14 t 114 dm cdmcdm current dmatr average true range 