INVITE-ONLY SCRIPT
ADX Change
Updated
––––History & Credit
The idea of ADX change came from a trading book I read by Charles Le Beau and David Lucas (Computer Analysis of the Futures Market).
–––––What it does
The script calculates the Average Directional Index (ADX) and the period to period change. The script calculated 4 conditions:
– ADX accelerating to the upside (color cyan):
- ADX>20
- DMI+>DMI-
- This period's absolute ADX number is HIGHER than pervious' period ADX number
- ADX momentum slowing to the upside (color blue):
*ADX>20
* DMI+>DMI-
*This period's absolute ADX number is LOWER than pervious' period ADX number
- ADX momentum accelerating to the downside (color yellow):
*ADX>20
* DMI->DMI+
*This period's absolute ADX number is HIGHER than pervious' period ADX number
- ADX momentum slowing to the downside (color yellow):
*ADX>20
* DMI->DMI+
*This period's absolute ADX number is LOWER than pervious' period ADX number
–––––How to use it
I combine the ADX Change as a secondary indicator, that confirms my positions. I combine it with other momentum indicators like the TTM Squeeze.
If I am in position and the ADX Change is cyan, I would hold on the position until I see some shift in momentum or ADX change. This helps me hold on to my winners.
For the more advanced traders, it could be used to indicate shifts in momentum and buy points.
Release Notes
Added a new ability for a follower. Now you have a dot on top to the chart.The dots indicate two conditions:
1) Accelerating dot (blue dot, can be customised);
2) Decreasing acceleration (yellow dot, can be customised);
When decreasing acceleration dot appears this signifies higher risk and potential reversial of the trend.
THE COLORS ARE CONSTANT IRRELEVANT IF THE TREND IS UP OR DOWN (HENCE ACCELERATING DOWN TREND AND ACCELERATING UPTREND WILL BOTH HAVE BLUE DOTS)
Release Notes
UPDATE- Added Alert conditions as a request from a client
- Alert 1: "Accelerating momentum" is showing increase in the current momentum. This can be both to the upside (long) or to the downside (short)
- Alert 2: "Strong accelerating momentum" is showing STRONG increase in the current momentum. This can be both to the upside (long) or to the downside (short)
- Alert 3: "Accelerating Bullish momentum" is showing increasing momentum to the upside. This triggers when there is increase in momentum of already proven trend to the upside.
- Alert 4 : "Decelerating Bullish momentum" is showing decreasing 1 bar momentum to the upside. This triggers when there is a decrease in 1 bar momentum of alredy proven trend to the upside.
- Alert 5: "Accelerating Bearish momentum" is showing increasing momentum to the downside. This triggers when there is increase in momentum of already proven trend to the downside.
- Alert 6: "Decelerating Bearish momentum" is showing decreasing momentum to the downside. This triggers when there is decrease in momentum of already proven trend to the downside. - Added ability to customise colors
- Added more symbols in the dropdown menu
NOTE Alert 1 and Alert 2 CAN trigger over Alert 3, Alert 4, Alert 5 and Alert 6. First two Alerts look at absolute 1 bar change of the ADX, whereas Alert 3 -6 consider the actual trend as well as the change.
Release Notes
- Added 2 new shapes for accelerating and strong accelerating changes
- Added a threshold input in the menu for the ADX settings
Invite-only script
Access to this script is restricted to users authorized by the author and usually requires payment. You can add it to your favorites, but you will only be able to use it after requesting permission and obtaining it from its author. Contact TintinTrading for more information, or follow the author's instructions below.
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👉 I share my TRADING everyday here: discord.gg/gTmcqWyWWe
👉 I sell premium indicators here: tradingviewindicators.net
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