cryptaux

SADX+DI - Smoothed Average Directional Index by CrypTaux

This script is based on ADX /DI and I use it to enter when trend is in early stage, then ride it & exit at the right time (that's the theory)

ADX is shown as histogram :
- light silver bars = price is under thresold but still no trend, be patient.
- strong gray bars = prepare to enter the trade soon
- blue bars = price momentum so ride the trend
- yellow bars = do not trade (price reverts or consolidates)

Background color/bottom area based on DI+/DI- :
- green = uptrend
- red = downtrend

Top pink triangles appears when ADX is relatively low based on "lookback" history (not based on previous static threshold) so a new trend may happens so stay alerts.

- Prepare for enter when bars turn dark gray and/or pink triangles appears.
- Enter position as soon as you see blue bar (Long or Short as indicated by the area color)
- and Exit on first yellow bar.

Quite simple, works on multiple HTF/ LTF and might be used with graphical analysis to find best opportunities.
Enjoy :)

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Version 35.
Script protégé
Ce script est publié en code source fermé et vous pouvez l'utiliser librement. Vous pouvez le préférer pour l'utiliser sur un graphique. Vous ne pouvez pas visualiser ou modifier son code source.
Vous voulez utiliser ce script sur un graphique ?
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Disclaimer : No financial advice. Ideas & scripts are for educational purpose only, always do your own research.

Commentaires

can you please grant me the code access for this script? I am a ADX lover and want to implement this strategy into my trading algorithm. Thanks
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cryptaux Thinkologist
Hi @Thinkologist, thank you for your message. I also find that ADX is very helpful when trading momentum, in my top 3 indicators :)

I don't want to publish the source at the moment, but here is when I add the "pink triangles" showing ADX is in a strong compression (squeeze) period :
==
is_adx_squeeze = (adx_value == lowest(adx_value, user_lookback_bars))
==
So ADX is in strong compression (boolean 'is_adx_squeeze') when ADX value ('adx_value') is the lowest point for 'user_lookback_bars' (input value set by default to 30).

And the area below ADX bars is the absolute difference between DI+ and DI- values.
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@cryptaux, thank you for the elaboration. I believe the ADX line itself has a different calculation than the original in your oscillator, because I see ups and downs are slightly differ from the built-in ADX indicator in Tradingview. i appreciate if you let me know if you have made any changes in the ADX formula itself that it moves smoother than the original?

Thanks
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cryptaux Thinkologist
Good guess :)

I don't remember where I've read about it but it was said that TV version of ADX was wrong at the time. I'm not a pro to tell which is exact, but I've searched for functions to get DI+, DI- and ADX that are used in this script. You can see them here (it was not my source but it is available in multiples scripts on TV) :
The dirmove() and adx() functions are the same as mine.

This script should have no secret for you now ;-)
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@cryptaux, thanks mate, wish you wealth and health !
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its a nice script.. ADX is undermined.. only if people knew how to use it.
great job. i wish the code was available to the public
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