Average Directional Index

The FMP ADX endpoint provides the Average Directional Index (ADX) for a security over a specified period of time. The ADX is a trend strength indicator that measures the strength of a trend regardless of its direction. The ADX is displayed as a line graph and can range from 0 to 100. A rising ADX line indicates that the trend is strengthening, while a falling ADX line indicates that the trend is weakening. An ADX reading above 25 is generally considered to indicate a strong trend, while an ADX reading below 25 is generally considered to indicate a weak trend. The FMP ADX endpoint is a valuable tool for investors who need to:

Measure the strength of a trend

Identify trend reversals

Develop trading strategies based on technical analysis