ADX Trend Strength Indicator: Realtime Excel Sheet

Most of our articles are centered across ‘Trend Following’ and its variations. We strongly believe that Trend is the best friend of every trader and would continue to be the same down the line. This article would focus on the most versatile Trend strength indicator used by Technical analysts know as Average Directional Index (ADX). This indicator aids in determining the strength of ongoing trend, and when combined with two supplementary indicators (+DI & -DI) it also helps in interpreting the direction of trend. We would learn how to trade with the help of these 3 indicators and always stay with the trend in correct direction. There is a downloadable Excel sheet at the end of the post where you can download real time stock quotes with ADX values.

Check out some of our very popular Excel based trading systems in the below link:

Excel Based Trading Systems

What is ADX?

Average Direction Index also known as ADX is a non-directional trend strength indicator. Its values oscillate between 0 to 100, higher the value higher is the strength of trend. The default look-back period off ADX to calculate trend strength is 14 periods, but various other periods are used depending on the relative volatility of stock or index. It is often used in conjunction with two other indicators, +DI and -DI which determines the direction of trend. ADX was developed in 1978 by J. Welles Wilder.

ADX is normally plotted as a single line in a stock chart. Below is the price chart with ADX.

Trend Strength Indicator

ADX Calculation

In order to accurately calculate ADX, you would need at-least 150 periodsĀ  of High, Low and Close values of the stock or index. Higher the period, more accurate is the ADX value as it depends on Wilder’s smoothing techniques. Below are the detailed steps for calculation:

  1. Calculate the True Range (TR). True range is the Max of:
    1. Current High minus Current Low
    2. Current High minus Previous Close
    3. Current Low minus Previous Close
  2. Calculate the directional movement +DM1 and -DM1. Directional movement is positiveĀ  when the current high minus the previous high is greater than the previous low minus the current low. This so-called Plus Directional Movement (+DM) then equals the current high minus the prior high, provided it is positive. A negative value would simply be entered as zero. Directional movement is negative (minus) when the previous low minus the current low is greater than the current high minus the previous high. This so-called Minus Directional Movement (-DM) equals the prior low minus the current low, provided it is positive. A negative value would simply be entered as zero.
  3. Calculate 14 period moving average of True range (TR14). Here the period 14 corresponds to the ADX period 14.
  4. Calculate 14 period moving average of +DM1 and -DM1. It would be called +DM14 and -DM14.
  5. Calculate +DI14 and -DI14.
    1. +DI14 is the ratio of +DM14 and TR14 expressed in % terms.
    2. -DI14 is the ratio of -DM14 and TR14 expressed in % terms.
  6. Calculate Directional Movement Index (DX). It equals the absolute value of +DI14 minus -DI14 divided by the sum of +DI14 and – DI14. It is also expressed in % terms.
  7. Calculate Average directional index (ADX). It is the 14 period moving average of DX.

Finally, don’t worry about the complex nature of these calculations as we have everything covered in the excel sheet which can be downloaded from the end of this post.

ADX Interpretation

ADX is a true Trend strength indicator and its values oscillate between 0 to 100. Below tables from Investopedia shows the interpretation of various ADX ranges:

ADX Value Trend Strength
0-25 Absent or Weak Trend
25-50 Strong Trend
50-75 Very Strong Trend
75-100 Extremely Strong Trend
You can use ADX with other Trend following systems to avoid whipsaws during sideways market.
In general, ADX is used in conjunction with +DI and -DI indicators which also helps in determining the direction of trend. If +DI value is greater than -DI then it indicates bullishness, and if +DI value is less than -DI then it indicates bearishness. Crossovers of DI lines can further help in timing the trades.

Trend Strength Indicator Excel Sheet Overview

This is an semi-automated Excel sheet which updates by itself on a single click. You would just need to enter the stock name, exchange and timeframe and the Excel sheet would do the job for you. Apart from calculating the ADX and DI values, this excel sheet also indicates Trend strength and direction. ADX value below 30 is interpreted as weak trend, while ADX value above 30 is interpreted as strong trend. The direction of the trend is calculated based on +DI and -DI values.

See the below screenshots:

Excel Input

ADX Excel Sheet

How to use this Excel Sheet

Step 1: Download the Excel file from the end of this post.

Step 2: Open this Excel file and make sure you are connected to internet. Please accept if it asks to enable Macros and Data connections.

Step 3: Input the Symbol Name, Exchange Name, Interval and Number of Days.

Step 4: Click on Get Data button. The data would be automatically downloaded and ADX values would be caluclated. This data can be downloaded for max 15 days and the minimum interval is 1 minute.

Download link for Trend Strength Indicator Excel Sheet

Please see the below link to download ADX Trend strength indicator excel Sheet. Please let us know if you have any feedback or comments.

ADX Excel Sheet

25 Comments

  1. sir why is the adx period in the excel sheet maxi to 15 days, you had previously mentioned it should be at least 150 days & further is the adx calculation in the excel sheet is for 14 days

    • Hi Manoj,

      We meant that it should be minimum 150 periods. 1 Day has close to 400 periods in 1 minute timeframe.

  2. sir minimum time frame is 6 hours in excel sheet, if we want ADX reading for daily candle i.e. 360 minutes is it possible to get

    • Hi Manoj,

      This Excel sheet is only for Intraday timeframe. We would create another one for daily TF.

    • Hi Gerald,

      Yes ADX can be used for commodity trading, but currently MCX exchange is not supported in the excel sheet.

  3. Dear sir,
    the exel sheet it’s realy helpful..
    is adx values changed automatically intraday like “OHL Strategy” excel sheet.. or we want refresh ..

    • Hi Lokesh,

      In this Excel sheet, you would need to manually refresh the values by clicking on ‘Get Data’ button.

  4. Dear Sir,

    Request you to please share “Supertrend scanner” based on EOD on excel sheet (automatically update) so that we can see active buying in filtered stock list and select stocks for further trading.

    Regards,
    VinDiCode

  5. Dear Sir,
    May I know how to modify it to support Hong Kong stock? Thank you!
    Best regards,
    Destiny

    • Try entering Stock Symbol and Exchange Code in the space provided in Excel sheet.

      • Dear Sir,
        I have tried it but failed. For example, Symbol: 5 and Exchange: HKG. Thank you!
        Best regards,
        Destiny

  6. Dear All,
    Since HKG stocks return format has another additional row “DATA_SESSIONS”, hence the program need to adjust a little bit to support HKG stocks. I have tried and it works, but it would be better to letter author to confirm. Thank you!
    Best regards,
    Destiny

  7. Dear Sir,
    Can you help with the list of Symbols to be used in the ADX sheet. Thank you!

  8. Hi. This is a great indicators of trend . As you mentioned this is for intraday. Question 1. Are the time period used are 1 minute interval. Question 2. Has this strategy been back tested, if yes then could you please publish results.

    • Hi Dhiraj,

      You have to input time period in the Excel sheet (See interval input). No, this strategy has not been backtested yet, but I have used it along with some trend following systems and it works well.

  9. Whether it can be used for NSE F&O Scrips, if so what is format that one should use for Symbol Code of the Scrip

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