TREND, MOVING AVERAGES & STRUCTURE

ADX (Average Directional Index)

The STRENGTH of the current trend, 0–100 — not its direction.

spec id: adxoutputs: adx · plus_di · minus_dilength (default 14)

What does ADX measure?

A 0-100 meter for how STRONG a trend is — not which way it points. Above roughly 25 usually means a real trend is under way; low readings mean the price is drifting sideways.

How is ADX calculated?

Each candle, measure how much further the high pushed up versus how much further the low pushed down. Smooth both over 14 candles with a running average that keeps most of yesterday's value, compare the two, and smooth the comparison again. The `plus_di` and `minus_di` outputs are the two sides on their own.

Written by reading the engine’s real computation, not a textbook — where the two differ, the page describes what actually runs.

How do traders read ADX?

Above ~25 means a real trend is on; below ~20 means chop. plus_di over minus_di says the trend points up, and vice versa.

The honest caveat

ADX confirms late and whipsaws around its threshold. Use it to filter, not to trigger.

How do I use ADX in a bot?

Add indicator → ADX (period 14). Outputs: adx, plus_di, minus_di.

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