Reading Smoothed ADX Direction and Trend Strength with FILTER_ADX_AM

Summary

FILTER_ADX_AM is a simple trend indicator built from a smoothed Average Directional Movement Index. It signals direction by comparing the positive and negative directional lines: the display marks one direction with a lime bar and the opposite with a red bar. The color therefore conveys which directional line is currently dominant.

Bar thickness adds a strength cue: a thick bar paired with rising ADX indicates a strengthening trend, while a thin bar paired with falling ADX indicates weakening. The description says the indicator was first implemented in MQL4 and published in 2009. It offers no chart-based evaluation, parameter guidance, or performance evidence, and does not show that these signals predict future price moves; users would need to assess its behavior and suitability independently.

Key ideas

• The indicator uses a smoothed ADX and compares its positive and negative directional lines.
• Bar color represents which directional line is dominant.
• Thick bars with rising ADX denote strengthening trends in the indicator's interpretation.
• Thin bars with falling ADX denote weakening trends.
• The document provides no evidence of predictive performance or trading outcomes.

Tags

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