ADX is an important indicator which provides information about the trend of the market / stock.

A high ADX value defines a strong trend ; the trend can be up or down.
A low ADX value shows a consolidation , such markets are difficult to trade.

ADX less than 20 is interpreted as a weak trend.
ADX rising from 15 to 25 from lower levels means trend is strengthening.
ADX above 30 is considered as strong trend.

There are two more lines in ADX namely , +DI and -DI
Long trades are entered when +DI is above -DI
Short trades are entered when -DI is above + DI

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