Combining ADX Direction with Bollinger Bandwidth for Trend Strength

Summary

This indicator description combines directional movement from ADX with Bollinger Bandwidth to visualize trend direction alongside volatility expansion. It colors the histogram green when the positive directional indicator is at least the negative one, and red when the negative indicator is higher. The plotted value is the ADX reading multiplied by the difference between the upper and lower Bollinger Bands, intended as a rough gauge of trend force as volatility expands.

The document presents a ProRealTime conversion of an indicator encountered in MT4 material and lists example periods of 13 for ADX and 20 for the bands. It explains the construction but provides no chart examples, market tests, entry or exit rules, or evidence that the combined value predicts future returns. Because band width depends on price scale and the multiplication changes the output magnitude, users should treat it as a visualization aid and evaluate its behavior across instruments and timeframes before using it in a systematic strategy.

Key ideas

• The indicator multiplies ADX by the width between the upper and lower Bollinger Bands.
• Its histogram color reflects whether the positive or negative directional indicator is larger.
• The output is intended to summarize trend direction and volatility expansion together.
• The document supplies no backtest, trading rules, or evidence of predictive performance.

Tags

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