To generate a signal when using the standard ADX indicator, the ADX line should cross some level - 20, 22, 22, etc. This level is hard to be determined precisely, that is why it is not easy to use.
This indicator solves the problem by not using this level at all. It has a signal line (the red one). If it crosses +DI upwards, a sell signal is generated; if it crosses -DI downwards, a buy signal is generated. The signal is canceled at a reverse crossing.
The signal line has a parameter of sensitivity. The higher the value, the higher the noise filter on high-volatility instruments. The lower the value, the more accurate signal. Recommended values are 5 to 30, you can try higher ones.
Any standard timeframe can be selected.
- Timeframe of ADX (0 - current) - the timeframe used for indicator calculations
- ADX period
- Applied price (close, open, etc.) - price type used for calculations
- Sensitivity of signal line - best values are -30
- Averaging method - averaging method of the signal line