ADX & DI in one line

The ADX & DI in one line indicator combines directional movement and trend strength into a single visual component that identifies trend changes through color transitions and strength via oscillator magnitude.

Usage

The indicator can be used to identify both the direction and the intensity of a market trend. When the line is green, it suggests a bullish trend (Plus DI > Minus DI), and when it is red, it suggests a bearish trend (Minus DI > Plus DI). The distance of the line from the zero level indicates the strength of the trend, derived from the ADX value.

Traders can also enable RSI-based signals to filter entries or identify overextended market conditions. Background highlights appear when the RSI crosses specific thresholds, providing a secondary layer of confirmation for trend reversals or continuations.

Details

This tool simplifies the standard Directional Movement Index (DMI) by consolidating the three traditional lines (+DI, -DI, and ADX) into a single oscillator.

• Trend Direction: Determined by the relationship between the Plus and Minus Directional Indicators.
• Trend Strength: The absolute value of the ADX is multiplied by the directional bias to create a single oscillating line.
• Filtering: A threshold setting ensures that minor fluctuations in ADX (low trend strength) do not trigger premature color changes, maintaining the previous trend's color until the threshold is met.

Settings

• ADX Length: The lookback period used for the initial ADX calculations.
• ADX Smooth: The smoothing period applied to the directional movement components.
• RSI Length: The period used for calculating the auxiliary Relative Strength Index.
• Threshold: The minimum ADX value required to confirm a trend change; helps filter noise in sideways markets.
• Upline: The upper RSI level (typically 70-80) used to trigger bearish overbought signals.
• Downline: The lower RSI level (typically 20-30) used to trigger bullish oversold signals.
• Use RSI signal?: Toggles the visibility of the RSI-based background color signals.

FAQ

How do I interpret the line color?

A green line indicates that the bullish directional movement is stronger than the bearish movement, while a red line indicates the opposite.

What does the "Threshold" setting do?

The threshold prevents the indicator color from flipping during periods of very low volatility. The color will only change if the underlying ADX value is above this set level.

How can I access this indicator?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.