ADX
ADX measures trend strength. It does not say whether the trend is up or down.
What this is
The adx filter calculates Average Directional Index from directional movement and true range. Its output is normally read on a 0 to 100 scale: higher values indicate stronger directional movement, while lower values indicate a less directional market.
When to use it
Use ADX as a regime filter, for example to allow a trend-following entry only when the market is moving directionally. Pair it with a direction filter such as DMI, price versus a moving average, or Ichimoku.
Before you start
- Default parameters are di_length: 14 and adx_smoothing: 14 .
- Available operators are above and below .
- Common reference levels such as 20 or 25 are conventions, not guarantees.
- Rising ADX means strengthening direction, not necessarily rising price.
Step by step
Step 1: Choose the timeframe
Use the timeframe that defines the market regime for the setup. A higher timeframe gives slower, broader context.
Step 2: Set the parameters
DI Length controls directional-movement measurement. ADX Smoothing controls how quickly the strength line reacts. Shorter values react faster and fluctuate more.
Step 3: Choose the condition
Use above with a chosen level to require directional strength. Use below to target quieter or range-like conditions. Test the threshold on the intended symbol and timeframe.
What you should see
A passing ADX above 25 rule means the calculated ADX is greater than 25 on the selected timeframe. It does not identify long or short direction.
Common mistakes
- using ADX as a bullish or bearish signal
- assuming ADX falling means price must reverse
- applying one threshold to every symbol and timeframe
- combining ADX with several other filters that measure the same trend strength
Related articles
- Filters Reference
- DMI
- Price Versus Moving Averages