Description
The Average Directional Index is as an indicator of trend strength. It ranges between 0 to 100 with higher values indicating stronger trend. Trend direction does not play a role in Average Directional Index indicator calculations.
Interpretation
The Average Directional Index is a lagging indicator therefore by itself will not signal a beginning of a new trend. It works best on well established trends reflecting trend strength with values above 40, and signaling very strong trends with values above 50.
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