Persistent Systems among 7 stocks entering strong trend zone, shows ADX

, ETMarkets.com|

12 Sep 2023, 07:29 PM IST

1/9

Trend Tracker

Considered the ultimate trend indicator, ADX or Average Directional Index helps quantify signal strength. The tool can be used with respect to any investment vehicle, including stocks, mutual funds, ETFs and derivatives.

ETMarkets has collated a list of large and midcap stocks that are entering a strong trend zone as the ADX for them crosses above 40 (Source: StockEdge). Note the data is of the previous trading session.

iStock

2/9

Understanding ADX

The ADX or Average Directional Index is a trend indicator that measures both intensity and momentum of a stock. The trend tracker helps minimize losses, and increase the scope of potential gains. The indicator’s calculations are based on a moving average of price range expansion over a time period.

The trend, which can be either up or down, is shown using two distinct indicators — DI or +DI — wherein DI stands for Directional Indicators.

iStock

3/9

NMDC

ADX as on September 11: 41.24| Last close: Rs 144.5

ETMarkets.com

4/9