Trend strength indicators, explained for Indian traders
Trend-strength indicators answer a different question from trend direction: not which way, but how strongly. They tell you whether a trend is worth following or whether the market is stuck in a range where trend systems bleed.
What are trend strength indicators? Trend-strength indicators measure how strong a trend is, independent of its direction. ADX, the Directional Movement Index (DMI), Aroon and the Vortex Indicator are the main tools — used to decide whether to deploy trend-following or mean-reversion tactics.
Average Directional Index ADX
Trend strengthThe ADX is a trend-strength indicator that measures how strongly a market is trending on a 0–100 scale, with readings above 25 signalling a strong tr…
Directional Movement Index DMI
Trend strengthThe Directional Movement Index is a two-line system of +DI and −DI that shows whether upward or downward movement dominates, giving trend direction, …
Aroon Indicator
Trend strengthThe Aroon indicator uses two lines — Aroon Up and Aroon Down — to measure how many periods have passed since the highest high and lowest low, reveali…
Vortex Indicator VI
Trend strengthThe Vortex Indicator uses two oscillating lines — VI+ and VI− — built from the relationship between highs and lows across bars, to identify the start…
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Frequently asked questions
What are trend strength indicators?
Trend-strength indicators measure how strong a trend is, independent of its direction. ADX, the Directional Movement Index (DMI), Aroon and the Vortex Indicator are the main tools — used to decide whether to deploy trend-following or mean-reversion tactics.
Which trend strength indicator is best for Nifty?
There is no single best trend strength indicator — each has strengths in different conditions. Most Indian traders start with the most popular in this family and combine it with an indicator from another category for confirmation. Explore each below with its formula, settings and Nifty example.