Trend Regime Scoring with Efficiency Ratio and ADX

Summary

This MetaTrader indicator is designed to classify market conditions as directional, mixed, or choppy. It combines Kaufman’s Efficiency Ratio with a direction signal based on price relative to a moving average and the moving average’s slope. The score is scaled by ADX, capped so ADX above its reference level does not increase the multiplier further, and displayed as a color-coded histogram. Green and red identify scores that pass positive or negative thresholds; grey indicates neutral or mixed conditions.

The document presents the calculation and lists adjustable moving-average, ADX, efficiency lookback, and threshold settings. It provides no backtest, market examples with measured results, or evidence that the filter improves trading outcomes. The indicator is explicitly a condition filter rather than a forecast or trade recommendation, and it does not place or manage trades. Any use requires separate validation for the instrument, timeframe, broker conditions, and risk limits; historical readings do not establish future performance.

Key ideas

• The score combines trend direction, efficiency, and an ADX-based strength multiplier.
• Direction is positive or negative only when price location and moving-average slope agree.
• Color-coded histogram bars distinguish strong positive, strong negative, and neutral readings.
• The indicator filters market conditions and does not generate or execute trades.
• The document offers no performance evidence, so users must validate it in their own settings.

Tags

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