StockEdge.com
  • Products
    • StockEdge Premium
    • StockEdge Pro
    • StockEdge Club
    • Compare Plans
StockEdge Blog
  • Trending Stocks
  • Insights
    • All
    • Business Houses
    • Markets themes
    • Stock Insights
    Zomato Shares

    Zomato Shares/Stock Analysis: Profile, Financials & Growth

    Aster DM Healthcare’s Spinoff of Gulf Hospitals – A Special Situation You Can’t Afford to Miss!

    Aster DM Healthcare’s Spinoff of Gulf Hospitals – A Special Situation You Can’t Afford to Miss!

    An image charging the electric vehicle from e-station and Text written on the right side

    India’s Top Electric Vehicle(EV) Stocks

    Top 5 Textile stocks

    Top 5 Textile Stocks in India: From Cotton to Cash

    multi-bagger stocks for 2025

    5 Multibagger Stocks to keep an eagle-eye for 2025

    Jindal Saw – Strong Earnings Momentum Ahead

    Jindal Saw – Strong Earnings Momentum Ahead

    Kirloskar Group- A Legacy of 134 Years

    Kirloskar Group- A Legacy of 134 Years

    renewable energy stocks in india

    Top Renewable Energy Stocks in India

    blue chip stocks

    Top 5 Blue Chip Stocks to Buy and Invest in 2023

  • Technical Analysis
    Chart Patterns – Holy grail of Stock Market Analysis

    Chart Patterns – Holy grail of Stock Market Analysis

    StockEdge Version Update : 9.0

    StockEdge Version Update : 9.0

    Beat the street with Sector Rotation Strategy

    Beat the street with Sector Rotation Strategy

    StockEdge Version Update 8.2

    StockEdge Version Update 8.2

    Derivative Analytics

    An Insightful Research Tool For Derivative Analytics

    Introducing Put-Call Ratio a Derivative Indicator in the Market

    Introducing Put-Call Ratio a Derivative Indicator in the Market

    A Powerful Technical Indicator Beta & Beta Scans

    A Powerful Technical Indicator Beta & Beta Scans

    Technical Analysis using Edge Charts

    Technical Analysis using Edge Charts

    adaptive relative strength and static relative strength scans

    What is Adaptive Relative Strength & Static Relative Strength Scans?

  • Fundamental Analysis
    • All
    • Cash Flow Ratios
    • Efficiency ratios
    • Growth Ratios
    • Liquidity Ratios
    • Return Ratios
    • Solvency ratios
    • Valuation Ratios
    high dividend paying stocks

    Identifying High Dividend Paying Stocks

    Understanding the Importance of creating Fundamental Scans

    Understanding the Importance of creating Fundamental Scans

    Using My Combination Scan to Identify best in an Industry

    Using My Combination Scan to Identify best in an Industry

    Cost Income ratio

    Cost to Income Ratio(%)

    Cost of Liability

    Cost of Liabilities (%)

    Operating Cost to Assets Ratio (%)

    Operating Cost to Assets Ratio (%)

  • StockEdge Tutorials
    Simplify stock market analysis with Edge Reports | StockEdge

    Simplify stock market analysis with Edge Reports | StockEdge

    StockEdge Club: An Exclusive Investors Hub & Analytics platform

    StockEdge Club: An Exclusive Investors Hub & Analytics platform

    FII/DII Data: Leading Indicators of Stock Market

    FII/DII Data: Leading Indicators of Stock Market

    Chart Patterns – Holy grail of Stock Market Analysis

    Chart Patterns – Holy grail of Stock Market Analysis

    StockEdge Version Update : 9.0

    StockEdge Version Update : 9.0

    Powerful Investment Themes for Retail Investors

    Powerful Investment Themes for Retail Investors

    Beat the street with Sector Rotation Strategy

    Beat the street with Sector Rotation Strategy

    StockEdge Version Update 8.3

    StockEdge Version Update 8.3

    StockEdge Version Update 8.2

    StockEdge Version Update 8.2

  • Mutual Fund
    Top 5 Mutual Funds for 2022 where you can start your SIP

    Top 5 Mutual Funds for 2022 where you can start your SIP

    What are Value Funds and its Advantages?

    What are Value Funds and its Advantages?

    thematic funds

    Thematic Funds : Everything you need to know

    Understanding Sector Funds and their Benefits to our Portfolio

    Understanding Sector Funds and their Benefits to our Portfolio

    Are Dividend Yield Funds a good option to invest in?

    Are Dividend Yield Funds a good option to invest in?

    What are Contra Funds and their advantages?

    What are Contra Funds and their advantages?

    Trending Tags

    No Result
    View All Result
    • Trending Stocks
    • Insights
      • All
      • Business Houses
      • Markets themes
      • Stock Insights
      Zomato Shares

      Zomato Shares/Stock Analysis: Profile, Financials & Growth

      Aster DM Healthcare’s Spinoff of Gulf Hospitals – A Special Situation You Can’t Afford to Miss!

      Aster DM Healthcare’s Spinoff of Gulf Hospitals – A Special Situation You Can’t Afford to Miss!

      An image charging the electric vehicle from e-station and Text written on the right side

      India’s Top Electric Vehicle(EV) Stocks

      Top 5 Textile stocks

      Top 5 Textile Stocks in India: From Cotton to Cash

      multi-bagger stocks for 2025

      5 Multibagger Stocks to keep an eagle-eye for 2025

      Jindal Saw – Strong Earnings Momentum Ahead

      Jindal Saw – Strong Earnings Momentum Ahead

      Kirloskar Group- A Legacy of 134 Years

      Kirloskar Group- A Legacy of 134 Years

      renewable energy stocks in india

      Top Renewable Energy Stocks in India

      blue chip stocks

      Top 5 Blue Chip Stocks to Buy and Invest in 2023

    • Technical Analysis
      Chart Patterns – Holy grail of Stock Market Analysis

      Chart Patterns – Holy grail of Stock Market Analysis

      StockEdge Version Update : 9.0

      StockEdge Version Update : 9.0

      Beat the street with Sector Rotation Strategy

      Beat the street with Sector Rotation Strategy

      StockEdge Version Update 8.2

      StockEdge Version Update 8.2

      Derivative Analytics

      An Insightful Research Tool For Derivative Analytics

      Introducing Put-Call Ratio a Derivative Indicator in the Market

      Introducing Put-Call Ratio a Derivative Indicator in the Market

      A Powerful Technical Indicator Beta & Beta Scans

      A Powerful Technical Indicator Beta & Beta Scans

      Technical Analysis using Edge Charts

      Technical Analysis using Edge Charts

      adaptive relative strength and static relative strength scans

      What is Adaptive Relative Strength & Static Relative Strength Scans?

    • Fundamental Analysis
      • All
      • Cash Flow Ratios
      • Efficiency ratios
      • Growth Ratios
      • Liquidity Ratios
      • Return Ratios
      • Solvency ratios
      • Valuation Ratios
      high dividend paying stocks

      Identifying High Dividend Paying Stocks

      Understanding the Importance of creating Fundamental Scans

      Understanding the Importance of creating Fundamental Scans

      Using My Combination Scan to Identify best in an Industry

      Using My Combination Scan to Identify best in an Industry

      Cost Income ratio

      Cost to Income Ratio(%)

      Cost of Liability

      Cost of Liabilities (%)

      Operating Cost to Assets Ratio (%)

      Operating Cost to Assets Ratio (%)

    • StockEdge Tutorials
      Simplify stock market analysis with Edge Reports | StockEdge

      Simplify stock market analysis with Edge Reports | StockEdge

      StockEdge Club: An Exclusive Investors Hub & Analytics platform

      StockEdge Club: An Exclusive Investors Hub & Analytics platform

      FII/DII Data: Leading Indicators of Stock Market

      FII/DII Data: Leading Indicators of Stock Market

      Chart Patterns – Holy grail of Stock Market Analysis

      Chart Patterns – Holy grail of Stock Market Analysis

      StockEdge Version Update : 9.0

      StockEdge Version Update : 9.0

      Powerful Investment Themes for Retail Investors

      Powerful Investment Themes for Retail Investors

      Beat the street with Sector Rotation Strategy

      Beat the street with Sector Rotation Strategy

      StockEdge Version Update 8.3

      StockEdge Version Update 8.3

      StockEdge Version Update 8.2

      StockEdge Version Update 8.2

    • Mutual Fund
      Top 5 Mutual Funds for 2022 where you can start your SIP

      Top 5 Mutual Funds for 2022 where you can start your SIP

      What are Value Funds and its Advantages?

      What are Value Funds and its Advantages?

      thematic funds

      Thematic Funds : Everything you need to know

      Understanding Sector Funds and their Benefits to our Portfolio

      Understanding Sector Funds and their Benefits to our Portfolio

      Are Dividend Yield Funds a good option to invest in?

      Are Dividend Yield Funds a good option to invest in?

      What are Contra Funds and their advantages?

      What are Contra Funds and their advantages?

      Trending Tags

      No Result
      View All Result
      StockEdge Blog
      Home Tutorials SE Blogs- Technical Tutorials
      How to Use Average Directional Index (ADX)

      How to Use Average Directional Index (ADX)

      StockEdge by StockEdge
      September 18, 2019
      Reading Time: 4 mins read
      10.6k
      VIEWS
      Share on FacebookShare on TwitterShare On WhatsApp

      Table of Contents

      • What is Average Directional Index?
      • Using Average Directional Index in StockEdge App:
        • Example 1: ADX Crossing 25 from Below and ADX Crossing 25 from Above:
          • Example 2: ADX Crossing 40 from Above and ADX Crossing 40 from Below:
          • Example 3: ADX Crossing 10 from Below and ADX Crossing 10 from Above:
          • Example 5: + DI Crossing 25 from Below and – DI Crossing 25 from Below:
        • TRADING & INVESTING WITH ADX (AVERAGE DIRECTIONAL MOVEMENT INDEX)

      “Follow the trend, the trend is your friend”- Jesse Livermore

      When we trade in the direction of a strong trend, it reduces risk and also increases our profit potential.

      The Average Directional Index (ADX) is a technical analysis indicator which is used by the traders for determining the strength of the ongoing trend.

      This ongoing trend can either by uptrend or downtrend which is shown by two accompanying indicators, the Positive Directional Indicator (+ DI) and the Negative Directional Index (- D).

      These ADX lines help the investors to take trade decisions whether to go long or short.

      Let us discuss about this indicator in details:

      What is Average Directional Index?

      The Average Directional Index along with the Directional movement indicators (DMI) such as Positive Directional Index and Negative Directional Index forms a trading system which was developed by Welles Wilder.

      DMI is used for identifying the ongoing trend.

      DMI ranges between the values of 0 and 100.

      To know more about Average Directional Index, watch the video below on StockEdge ADX Scan Tutorial:

      Using Average Directional Index in StockEdge App:

      We have discussed about the basics of ADX, now let us discuss how to use this technical indicator to filter out stocks for trading:

      In StockEdge there are many Average Directional Index scans available for filtering out stocks for trading:

      Let us discuss a few of these scans:

      Example 1: ADX Crossing 25 from Below and ADX Crossing 25 from Above:

      average directional index technicals scan

      ADX Crossing 25 from Below indicates that the stock is in trending phase whereas ADX Crossing 25 from Above indicates that the stock is in consolidation phase.

      When we click on ADX Crossing 25 from Below scan, we get a list of stocks which fulfill this criterion:

      After clicking on Kolte Patill Developers Ltd. we get a technical chart with ADX plotted in the sub-graph:

      Example 2: ADX Crossing 40 from Above and ADX Crossing 40 from Below:

      ADX Crossing 40 from Above indicates beginning of consolidation after a strong uptrend whereas ADX Crossing 40 from Below indicates that the stock is entering strong trend zone after being consolidated.

      When we click on ADX Crossing 40 from Above scan, we get a list of stocks which fulfill this criterion:

      Example 3: ADX Crossing 10 from Below and ADX Crossing 10 from Above:

      ADX Crossing 10 from Below indicates that the stock is entering the range bound zone whereas ADX Crossing 10 from Above indicates that the trend is weak.

      When we click on ADX Crossing 10 from Above scan, we get a list of stocks which fulfill this criterion:

      Example 4: + DI Crossing – DI from Below and + DI Crossing – DI from Above:

      + DI Crossing – DI from Below is a bullish scan which signifies probable beginning of an uptrend whereas + DI Crossing – DI from Above is a bearish scan which signifies probable beginning of a downtrend.

      When we click on + DI Crossing – DI from Below scan, we get a list of stocks which fulfill this criterion:

      Example 5: + DI Crossing 25 from Below and – DI Crossing 25 from Below:

      + DI Crossing 25 from Below indicates that the stock has potential of continuing upward momentum whereas – DI Crossing 25 from Below indicates that the stock has potential of continuing downward momentum.

      When we click on + DI Crossing 25 from Below scan, we get a list of stocks which fulfill this criterion:

      Above are examples of the ADX scans that generates buy and sell signals and also give us a list of the stock which fulfills the criteria of the scans for that particular day.

      You can filter out the stocks and can trade accordingly using these scans.

      Average Directional Index scans and Interactive charts are only available for paid subscribers. You can check out our subscriber plans from here.

      To have a comprehensive idea of the Average Directional Index, click here.

      Want to trade and invest with ADX? Avail the course:

      TRADING & INVESTING WITH ADX (AVERAGE DIRECTIONAL MOVEMENT INDEX)

      Tags: technical analysisTechnical indicatorsTechnical scans
      ShareTweetSend
      Subscribe On Telegram Subscribe On Telegram Subscribe On Telegram
      Previous Post

      What is Commodity Channel Index (CCI)?

      Next Post

      Parabolic SAR (PSAR): Definition & Calculation

      StockEdge

      StockEdge

      StockEdge is a self-help Equity and Mutual Fund research tool. It empowers retail investors to identify investment opportunity with all the necessary data and analytics.

      Next Post
      Parabolic SAR (PSAR): Definition & Calculation

      Parabolic SAR (PSAR): Definition & Calculation

      Average True Range (ATR)

      Average True Range (ATR)

      Using My Combination Scan to Identify best in an Industry

      Using My Combination Scan to Identify best in an Industry

      Contact Us
      • Timing (Mon-Sat): 10 am to 7 pm
      • Sales: +919830994463
      • Support: +919830994402
      • Club Support: +916289906895
      • Affiliate: +917003567131
      Recent Posts
      All About NIFTY50, Components of NIFTY50, and How to Invest in it
      Simplify stock market analysis with Edge Reports | StockEdge
      Important Links
      • StockEdge.com
      • StockEdge Premium
      • - Quarterly Membership
      • - Annual Membership
      • StockEdge Analyst
      • StockEdge Club
      • Compare Plans
      An Initiative Of

      © 2023 Kredent InfoEdge Pvt Ltd.

      Facebook-f Twitter Instagram Linkedin-in Youtube Pinterest-p

      Get StockEdge App

      No Result
      View All Result
      • Home
      • Article Categories
        • Fundamental Analysis
        • Technical Analysis
        • Market Themes
        • StockEdge Tutorials
        • StockEdge Version Updates
      • Products
        • StockEdge Premium
        • StockEdge Pro
        • StockEdge Club
        • Compare Plans
      • Visit StockEdge.com

      © 2023 Kredent InfoEdge Pvt Ltd.

      ELM School

      Premium or Pro or Club?

      The market is back in decent shape and the good time to invest in stock is finally here.
      Become a smart investor with a stunning deal! Use code DEAL30 to get any plan at 30% flat discount

      GET YOUR PLAN