Adapting ADX Momentum with the Vertical Horizontal Filter

Summary

This indicator modifies an ADX-style trend-strength display by using the Vertical Horizontal Filter to adapt its response. The description says the adaptive version reacts more quickly to market changes than the regular version, with signals tending to appear earlier. It represents positive and negative ADX half-waves in different colors and shows the difference between positive and negative directional indicators as a separate line.

The suggested interpretation follows two horizons: color changes can serve as short-term trend-change cues, while crossings of the zero line can support a longer-term trend assessment. Dashed threshold levels mark conditions considered trend-like; the source description gives a typical approximate range for those levels and says the choice depends somewhat on timeframe. No backtest, parameter study, or evidence of profitability is included, so the faster response may also require testing for noise and false signals.

Key ideas

• The indicator uses the Vertical Horizontal Filter to adapt an ADX-based measure.
• Positive and negative trend-strength half-waves are shown separately, with directional-indicator difference also displayed.
• Color changes are suggested for short-term trend shifts, while zero-line crossings are suggested for longer-term assessment.
• Dashed levels identify possible trending conditions, with the level dependent in part on timeframe.
• The document provides usage guidance but no performance evidence or validation.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.