The ADX Indicator is a technical analysis tool used to measure the strength of a trend. The inputs below allow the user to customize how the ADX is calculated and used in their trading strategy.


  • Enable ADX Strategy: This input is a boolean (true/false) value that enables or disables the ADX strategy.
  • ADX Strategy Selection: This input allows the user to select from several different ADX strategies, including ADX & DMI, DMI Channel, ADX Only, and Strict Cross.
  • ADX Strategy Settings: This input allows the user to specify the sensitivity of the ADX calculation, with options for Less Sensitive, Standard (default), and More Sensitive.
  • Crossing Type: This input specifies the type of crossing that should be used to trigger trades. Options include ADX crosses value, DMI crosses value, ADX crosses up DMI, DMI crosses up ADX, and DI+ crosses DI-.
  • Use ADX Rate of Change: This input is a boolean (true/false) value that enables or disables the use of the ADX rate of change in the trading strategy.
  • Custom ADX Length: This input is a boolean (true/false) value that allows the user to specify a custom length for the ADX calculation. If enabled, the user can specify the length using the next input.
  • ADX: If the "Custom ADX Length" input is enabled, this input allows the user to specify the length of the ADX calculation.
  • ADX Crossing Point: This input specifies the value at which the ADX should cross to trigger a trade.
  • DMI Crossing Point: This input specifies the value at which the DI+ or DI- should cross to trigger a trade.
  • DMI Channel Spread: This input specifies the spread between the DI+ and DI- that should be maintained to trigger a trade.


The Average Directional Index (ADX) is a technical indicator used to measure the strength of a trend. It is calculated using the Directional Movement Indicator (DMI), which consists of two lines: the positive Directional Indicator (+DI) and the negative Directional Indicator (-DI).


To calculate the ADX, the first step is to calculate the +DI and -DI lines. This is done by comparing the current high and low prices with the previous period's high and low prices. The +DI line is calculated by dividing the difference between the current period's high and the previous period's high by the sum of the current period's high and the previous period's low. The -DI line is calculated by dividing the difference between the current period's low and the previous period's low by the sum of the current period's low and the previous period's high.


Once the +DI and -DI lines have been calculated, the ADX is calculated by taking the absolute difference between the +DI and -DI lines, and then dividing this value by the sum of the +DI and -DI lines. This value is then smoothed using an exponential moving average (EMA) with a certain length (commonly 14 periods).


The ADX is a value that ranges from 0 to 100, with a higher value indicating a stronger trend. A reading above 25 is considered to indicate a strong trend, while a reading below 20 indicates a weak trend or range-bound market.


To use the ADX in a trading strategy, the trader can look for crossovers between the +DI and -DI lines, or for the ADX to cross a certain threshold value. These signals can be used to enter or exit trades in the direction of the trend. The ADX can also be used in combination with other technical indicators to confirm the strength of a trend or to filter out false signals.