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…