ADX Trend Signals from Three ADX Periods and Directional Movement

Summary

The indicator described here combines three ADX calculations with different configurable periods. It places a signal pointer when all three ADX main-line readings rise from the previous bar to the current one, while the first two readings exceed their respective thresholds. The user can set the periods, thresholds, applied price, and whether pointer placement uses high/low or open prices.

Signal direction comes from the first ADX calculation’s directional movement lines: positive directional movement produces a bearish pointer, while negative directional movement produces a bullish pointer. The document defines these comparisons but supplies no backtest, chart evidence beyond figure captions, or guidance on trade entry, exits, or risk. The indicator’s signals therefore describe a rule for marking bars, not demonstrated profitability; the source text also contains a misspelled parameter label and translated wording.

Key ideas

• The indicator checks the main lines of three ADX calculations for simultaneous increases.
• The first two ADX readings must also exceed configured threshold levels.
• The first calculation’s positive and negative directional lines determine the bearish or bullish pointer.
• Pointer placement can be based on bar highs and lows or on open prices.
• No performance results or complete trading rules are provided.

Tags

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