Jackrabbit TV Recipes using the ADX indicator

Recipes using the ADX indicator

The average directional movement index (ADX) was developed in 1978 by J. Welles Wilder as an indicator of trend strength in a series of prices of a financial instrument.

The Average Directional Index (ADX) is a technical indicator used to measure the strength of a trend. It is often used in conjunction with other indicators to confirm the direction and strength of a trend.

The ADX is calculated based on the difference between two moving averages of price (typically, the high and low prices for a given time period). The resulting value is then smoothed using a moving average.

The ADX is plotted as a single line on a separate chart and is typically displayed with a range from 0 to 100. A reading above 25 is generally considered to indicate a strong trend, while a reading below 20 suggests a weak trend.

Traders often use the ADX in combination with other indicators to determine the best time to enter or exit a trade. For example, a trader might look for a reading above 25 as a signal to enter a trade in the direction of the trend, and then look for a reading below 20 as a signal to exit the trade.

Overall, the ADX is a useful tool for identifying the strength of a trend and can help traders make more informed decisions about their trades.

The ADX indicator for the Jackrabbit suite and modulus framework supports differential timeframe analysis and confirmational bias.

Timeframes supported: 1 Second, 5 Seconds, 15 Seconds, 30 Seconds, 1 Minute, 5 Minutes, 15 Minutes, 30 Minutes, 45 Minutes, 1 Hour, 2 Hours, 3 Hours, 4 Hours, 6 Hours, 8 Hours, 12 Hours, 1 Day, and any custom timeframe TradingView supports.

The main indicatior and the confirmational indicator can both be individually tuned for the length of the ADX signal. When confirmation bias is enanled, its chart is inverted below 0.

Many thanks to Waffles for contributing the aggressive smoothing algorithm.

The Jackrabbit modulus framework is a plug in play paradigm built to operate through TradingView's indicator on indicatior (IoI) functionality. As such, this script receives a signal line from the previous script in the IoI chain, and evaluates the buy/sell signals appropriate to the current analysis. The results are either combined with the signal line, or used as confirmation to the signal line. A new signal line is generated for the next script in the link.

Buy/Sell alerts are produced, but this script is not designed or meant to function outside my framework. By default, the signal line is visible and the charts are turned off. Signal line visibility is controlled by the Style tab, and the charts display is controlled by the indicator settings tab.

This script is part of a subscription along with 20 other scripts that make up Jackrabbit TV. For more information, please visit my patreon site.

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