What it does
ADX Trend Strength turns J. Welles Wilder's Average Directional Index into a colour histogram, so you can see at a glance whether the market is trending and in which direction. DI+ and DI− lines are drawn on top, and arrows mark DI crossovers that happen while ADX shows at least a developing trend.
The histogram uses five colours: grey for weak or no trend, light green or light red for a developing trend, and strong green or strong red for a strong trend.
How it works
The ADX, DI+ and DI− values come from MetaTrader's built-in Wilder ADX:
- +DM is the part of today's high above yesterday's high, and −DM is the part of today's low below yesterday's low; only the larger of the two counts on each bar.
- +DM, −DM and true range are smoothed with Wilder's method over 14 bars. DI+ = 100 × smoothed +DM ÷ smoothed TR, and DI− likewise.
- DX = 100 × |DI+ − DI−| ÷ (DI+ + DI−), and ADX is DX smoothed again over 14 bars.
Colouring rules for each bar:
- ADX below 20: grey.
- ADX from 20 up to 25: light green if DI+ is at or above DI−, otherwise light red.
- ADX at or above 25: strong green or strong red by the same DI comparison.
A bullish arrow marks a closed bar where DI+ crosses above DI−; a bearish arrow marks DI− crossing above DI+. With the filter on, crosses while ADX is below 20 are ignored.
How to use it
- ADX measures strength, not direction. A rising ADX in red means a strengthening downtrend, not a bullish signal.
- Many traders use grey periods to switch to range tactics or to stand aside, and the strong colours to favour trend-following entries.
- A DI cross with ADX already rising through the weak level is a stronger trend start than a cross with ADX falling.
- A falling ADX from high levels often signals that a trend is maturing or pausing, even if DI lines have not crossed.
- It combines well with a trend tool on the price chart, such as moving averages or a trailing stop.
Settings
| Input | Default | What it changes |
|---|---|---|
| ADX / DI length | 14 | Smoothing of all three lines; lower reacts faster |
| Weak level | 20 | Threshold for grey bars and for the cross filter |
| Strong level | 25 | Threshold for the strong colours |
| DI cross arrows only when ADX >= weak level | true | Turn off to see every DI cross |
| Pop-up alert / Push notification | false / false | One alert per closed bar on a new DI cross |
Limitations
- ADX is double-smoothed and therefore slow. It often confirms a trend well after it began.
- DI lines cross frequently in choppy markets; the ADX filter reduces but does not remove false crosses.
- The 20 and 25 levels are conventions, and suitable values differ between instruments and timeframes.
- Values on the live bar update with each tick; arrows and alerts are confirmed on the bar close.
- Educational tool only. Trading carries substantial risk of loss, so test any approach on a demo account first.