
Key Features:
- ADX and ADI Line (Blue): Shows the smoothed strength of the current trend, regardless of direction.
- +DI Line (Green): Indicates the strength of upward movements.
- -DI Line (Red): Indicates the strength of downward movements.
- Threshold Line (Gray): A horizontal reference level (default 25) to help identify whether the trend strength is significant.
How It Works:
- The indicator calculates True Range (TR), Positive Directional Movement (+DM), and Negative Directional Movement (-DM).
- It applies Wilder’s smoothing technique to compute the smoothed values of TR, +DM, and -DM.
- From these, the Directional Indicators (+DI and -DI) are derived, showing which side (bullish or bearish) has stronger momentum.
- The DX (Directional Index) is calculated from the relative difference between +DI and -DI.
- Finally, the ADX (Average Directional Index) is computed as a smoothed version of DX, providing a measure of overall trend strength.
Interpretation:
- When ADX is above the threshold (e.g., 25), the market is considered to be trending strongly.
- When +DI > -DI, bulls are in control (uptrend).
- When -DI > +DI, bears are in control (downtrend).
- When ADX is below the threshold, the market is considered to be ranging (weak or no trend).
More from this author
Bạn cũng có thể thích
Chỉ báo
forex
TrendFibonacci
The TrendFibonacci indicator is a powerful tool for traders, combining Fibonacci retracement levels
Chỉ báo
breakout
Pivot Points Daily Session
Pivot Point with base zone daily Asia-London-New york Session.
Chỉ báo
eurusd
Compare Symbol
Plots chosen symbol's close price, candlestick (wick, body) on cTrader chart, supports multiple timeframes.
Chỉ báo
bollinger
E7 Indicators Free Overlays
Bollinger Band Cloud, Heiken Ashi, Trend Follower and Parabolic SAR.