ADX_RD

3 בדצמ׳

ADX_RD - Average Directional Index (Ryan DeBraal)
This script plots a refined version of the **ADX (Average Directional Index)**,
used to measure trend strength regardless of trend direction. It includes
custom smoothing, modified DM (Directional Movement) logic, dynamic coloring,
and a built-in 20-level threshold.

FEATURES
- Calculates +DI, –DI, and ADX using standard Wilder smoothing (RMA).
- Signal color turns **white** when ADX < 20 (low-trend or choppy conditions).
- Signal color turns **blue** when ADX >= 20 (trend strengthening).
- Horizontal dotted reference line at **20**, a widely used threshold:
ADX < 20 → weak or ranging market
ADX > 20 → strengthening trend
- Works on all timeframes, supports custom smoothing lengths.

PURPOSE
This indicator helps identify when a market is trending vs when it is flat.
It does not indicate direction by itself — only the strength of the move —
making it ideal for confirming breakout setups, trend-following entries,
and filtering out low-probability trades during chop.

5 בדצמ׳

הערות שחרור

ADX_RD - Average Directional Index (Ryan DeBraal)
This indicator provides a complete visualization of trend strength and directional pressure
using the classic ADX system with Wilder smoothing. It plots the ADX line along with the
+DI (bullish pressure) and -DI (bearish pressure) lines to show both the strength and the
dominant side of the market. The script enhances the standard ADX toolkit by adding dynamic
line styling, adjustable smoothing, opacity control, and visual thresholds that help traders
quickly assess whether a trend is worth trading.

OVERVIEW
ADX (Average Directional Index) measures the strength of a trend, regardless of whether
the trend is moving up or down. By itself, ADX does not indicate direction. Instead, it
quantifies how strong the current move is. The companion lines — +DI and -DI — indicate
which side (buyers or sellers) is currently exerting more directional force.

HOW IT WORKS
- +DI rises when price makes stronger upward moves (higher highs).
- -DI rises when price makes stronger downward moves (lower lows).
- ADX rises when either side is pushing strongly and the market is becoming directional.
It falls when price movement becomes weak, noisy, or range-bound.

ENHANCED FEATURES
- Wilder-smoothing of +DI, -DI, and ADX for consistent trend-strength measurement.
- Configurable threshold level (default 20), widely used to separate weak markets from
trending ones. When ADX remains below this threshold, conditions are often choppy.
- Automatic color shifting of the ADX line:
ADX < threshold → white (weak or no trend)
ADX >= threshold → yellow (trend developing or strong)
- Adaptive line thickness behavior: the ADX line becomes thicker when the trend is strong,
helping visually highlight actionable conditions.
- Optional display of +DI and -DI lines, each rendered with adjustable opacity so they can
either stand out or stay subtle depending on the trader's preference.
- Horizontal dotted reference line at the threshold for quick visual anchoring.
- All smoothing lengths and display parameters can be customized.

PURPOSE AND TRADING USE
The goal of this indicator is to let traders quickly answer two questions:
1. Is the market trending or flat?
2. If trending, who is in control: buyers or sellers?
ADX_RD is especially useful when:
- Confirming breakouts (ADX rising above threshold)
- Filtering entries for trend-following strategies
- Avoiding low-probability trades during sideways or volatile chop
- Pairing with MACD, EMA, RSI, VWAP, or price-action setups as a final trend-strength filter

IMPORTANT NOTES
- ADX measures *strength*, not direction.
- Direction comes from +DI and -DI:
+DI above -DI → bullish pressure dominant
-DI above +DI → bearish pressure dominant
- High ADX with a clean DI separation typically indicates the strongest opportunities.
- Low ADX implies signals from other indicators may fail due to lack of trend.

In short, ADX_RD provides a clean, enhanced visualization of trend conditions, helping traders
avoid chop, focus on strong directional setups, and make more disciplined entries.