ATR and ADX Indicators Overview

A price range indicator that measures market volatility, showing the average price range over a specific time period.

The highest price difference between today's high, low, and the previous day's closing price.

Moving average of True Range values; typically a 14-period Exponential Moving Average (EMA).

Used for identifying market volatility changes, significant trend changes and stop-loss placement (suitable for forex and commodities).

Oscillator indicator measuring the strength and direction of a trend.

Values below 20 suggest a weak trend, 40+ a strong trend, and above 60 is a very powerful trend.

Part of the ADX calculation, measuring the strength of bullish trends.

Combines other indicators. (Positive Directional Indicator (+DI) and Negative Directional Indicator (-DI).

An oscillator momentum indicator that measures the buying and selling pressure in a stock or market. It considers both price and volume.

A value above 80 suggests the market is overbought and a potential top. A value below 20 suggests the market is oversold and a potential bottom.

Positive divergence occurs when the price makes a new low, but the MFI makes a higher low. Negative divergence occurs when price makes a new high, but the MFI makes a lower high. These divergences can indicate potential trend reversals.

A momentum indicator that measures the closing price of a security relative to its price range over a given period, usually 14 days.

A value below -80 suggests that the stock is oversold and likely to rise. A value above -20 suggests that the stock is overbought and likely to fall.

You can use a -50 level line to gauge the 6-month trend of a security. A 125-day %R covers approximately 6 months.