FTB-C000373 / Indicator

Average Directional Index

Average Directional Index is a Wilder-smoothed average of Directional Index values.

Also known asADX

Advanced 1 linked topicPublished

Definitions

In plain terms

It summarizes the persistence of direction-free DI separation and is commonly interpreted as trend strength under a declared context.

Technical

The calculation freezes DX convention, period, initial average, recursive update, first-ready index, missing data, precision, and revisions.

Scope

ADX does not state whether the observed directional movement is upward or downward.

Examples

  • A governed lesson calculates or identifies Average Directional Index only after its parameters, state, timing, and edge cases are declared.

Common misconceptions

  • ADX does not state whether the observed directional movement is upward or downward.

Concept relationships

Prerequisites

Related

Where this concept is used

Tutorials planned

These catalogued topics use this concept, but their complete build has not shipped yet.

  • D07-F02-A05 Primary

Evidence and governance

  1. TA-Lib Average Directional Index Implementation TA-Lib · first party technical publication

    Supports: preferred label, short definition, technical definition

    Limits: Unstable periods and platform-specific first-ready indexes must be reconciled before claiming exact parity.

Reviewed by
fintech-builder-batch-007
Last reviewed
2026-07-27
Next review
2027-07-27
Record status
published
Written by

Fintech engineer building market-data and financial systems, and the author of every article, glossary record, and reference implementation on The Fintech Builder.