Average Directional Index (ADX)
The ADX measures the strength of a trend, regardless of its direction. It does not tell you whether the trend is up or down — only whether the market is trending strongly or moving sideways.
How it works: The ADX is derived from two directional indicators: +DI (positive directional indicator) and -DI (negative directional indicator). The ADX itself is a smoothed average of the difference between these two. Values range from 0 to 100.
Resources: TradingView ADX docs
Settings in block algo flex
| Setting | Description | Default |
|---|---|---|
| Use ADX? | Enable/disable the ADX indicator | Off |
| ADX Smoothing | Smoothing period for the ADX line | 14 |
| DI Length | Period for calculating +DI and -DI lines | 14 |
| Timeframe | Timeframe for calculation | Chart |
| Buy Condition | ADX level for buy signals (e.g., "Greater Than 25") | Greater Than 50 |
| Sell Condition | ADX level for sell signals (e.g., "Less Than 20") | Less Than 50 |
How to Interpret
- ADX < 20 — Weak trend or sideways market
- ADX 20-25 — Trend may be emerging
- ADX 25-50 — Strong trend in progress
- ADX > 50 — Very strong trend (rare)
Pro Tip: ADX works best as a filter rather than a standalone signal. Enable it alongside other indicators to only take trades when a strong trend is present (e.g., ADX > 25), which helps avoid false signals in choppy, sideways markets.