The Average Directional Index (ADX) indicator measures the strength of a prevailing trend as well as the degree of movement in a market.
The ADX is non-directional and helps validate the strength of a trend regardless of whether the trend is bullish or bearish.
An ADX value of less than 20 typically indicates a market that is not in a trend. A move above 20 can be an indication that a trend (either up or down) is beginning. If the ADX is over 40 and begins to fall, it can be an indication of a possible stall or reversal (drop) in upward trending price movement.
ADX entry and exit signals are typically the most meaningful when the price and volume of the chart being analyzed has also set up a bullish or bearish pattern. Using the ADX for additional confirmation of what has already been "read" in the chart can be a powerful addition to the assessment tools used by a technical analyst