ADXm: Visualizing Directional Trend Strength and No-Trend Zones
Summary
ADXm is described as a variation on the traditional ADX indicator that makes trend direction easier to read. It displays positive and negative ADX half-waves separately and shows the difference between the positive and negative directional indicators. Dashed threshold levels mark conditions treated as a trending market; the description says these are commonly set around 20–25 percent, depending partly on timeframe.
The indicator is intended to be used similarly to traditional ADX. Trend-following traders can use threshold crossings to identify trend conditions, while countertrend traders may watch a return into the no-trend zone as a possible reversal area. This version also allows selection among 22 price types for its calculations, whereas the original used fixed high, low, and close inputs. The document provides a conceptual description, not testing results or evidence that the indicator improves trading outcomes.
Key ideas
- ADXm separates positive and negative ADX half-waves to make direction more visible.
- The difference between positive and negative directional indicators is also displayed.
- Threshold levels are used to distinguish trending conditions from a no-trend zone.
- A return to the no-trend zone may be considered a possible reversal signal by countertrend traders.
- This version allows a choice among 22 price types for its calculations.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.