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Average Directional Index (ADX) is a widely used indicator for technical analysts. ADX was developed by J. Welles Wilder in 1978. The main objective of ADX is to indicate the strength of a trend in a market instrument. This indicator does not say if the trend is bullish or bearish neither does it say if the current pair is overbought or oversold it just simply tells the strength of a trend.
ADX is a lagging indicator which means a trend must have established itself before the ADX will generate a signal that a trend is underway. ADX ranges between 0 and 100. Generally, if ADX is below 20 then we can say current trend is weak, and if the ADX is above 40 then we can say trend is strong. And we can say trend is extremely strong when ADX is above 50.