Reading Trend Direction and Strength with a Smoothed ADX Indicator

Summary

This indicator uses a smoothed Average Directional Movement Index to mark trend direction and apparent strength on the price chart. It compares the positive and negative directional lines: when the positive line is higher, the chart displays a lime dot; when the negative line is higher, it displays a red dot. Dot size and ADX movement add a strength cue: a larger dot with rising ADX signals a strengthening trend, while a smaller dot with falling ADX signals weakening momentum.

The description identifies the indicator as a revised implementation first made for MQL4 and published in 2009. It explains the signal encoding but provides no performance results, entry or exit rules, parameter guidance, or testing evidence. The dots therefore offer a visual trend filter rather than a complete trading strategy, and the text does not establish whether the signals are predictive or how they behave across markets and timeframes.

Key ideas

• The indicator compares the positive and negative directional lines to mark trend direction.
• A lime dot denotes the positive line above the negative line, while red denotes the reverse.
• A larger dot paired with rising ADX represents strengthening trend conditions.
• A smaller dot paired with falling ADX represents weakening trend conditions.
• The description gives no performance tests or complete trading rules.

Tags

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