The indicator consists of three lines. From the ADX line, we can measure the strength of the main trend:
- 0-25 - the trend is weak or absent
- 25-50 - the trend is strong
- 50-75 - the trend is very strong
- 75-100 - the trend is incredibly strong
By the lines of the two direction indicators +DI and -DI, we can determine the direction of the trend and market sentiment:
- the +DI line above the -DI line is an uptrend, bullish sentiment.
- the -DI line above the +DI line is a downtrend, bearish sentiment.