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Learn ADX

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Key takeaways. Average directional index (ADX) is a short-term chart indicator. It can be used to help you evaluate the market or an investment's strength. ADX currently suggests the short-term momentum behind stocks may be strong, with a caveat

The ADX is widely used and is considered by many traders to be very reliable as a gauge of trend strength. Traders can easily alter the time period to meet their needs.

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