What is this indicator?
Measures the strength of a trend regardless of its direction; a high reading means a strong trend, a low reading means a directionless market. It's usually used alongside the +DI and -DI lines to determine trend direction.
How to read the chart
When the indicator's main line takes on a clear direction, it usually confirms the market's dominant trend in that same direction; crossovers and changes in slope are the main points of focus.
Practical tip
It's best to use this indicator alongside a momentum indicator so that both trend direction and trend strength can be measured.