Supertrend ADX

The SuperTrend ADX indicator combines the trend-following capabilities of the SuperTrend with the Average Directional Index (ADX) to dynamically adjust sensitivity based on trend strength.

Usage

The SuperTrend ADX can be used to identify trend direction and potential reversals while adapting to market volatility. The primary output is a SuperTrend line that changes color based on trend direction (green for bullish, red for bearish), with color intensity increasing as the trend strengthens.

Users can choose between two modes of operation:

• Compress: In this mode, the SuperTrend factor shrinks as the trend gains strength. This brings the indicator closer to the price action, allowing for faster exits or trend-flip signals during parabolic moves.
• Expand: In this mode, the SuperTrend factor grows as the trend strengthens. This distances the indicator from the price, preventing premature exits during strong, sustained trends.

The indicator includes built-in signals for trend flips (Buy and Sell labels) and provides data windows for continuous trend monitoring, which can be useful for filtering trades.

Details

The script calculates a normalized ADX value based on historical chart data. This normalized value determines which multiplier "tier" is applied to the base SuperTrend factor.

The calculation logic involves:

1. ADX Calculation: Determining the trend strength using standard DI+ and DI- values over a user-defined smoothing period.
2. Normalization: The current ADX is measured against historical maximums to create a relative strength scale (0.0 to 1.0).
3. Tiered Adjustment: Based on the normalized ADX value, the script selects one of nine different factors. If "Compress" is selected, the factor decreases as ADX rises; if "Expand" is selected, it increases.

Settings

General Settings

• ADX influence: Determines how significantly the ADX strength modifies the SuperTrend factor. Higher values result in more aggressive expansion or compression.
• ADX effect: Selects between "Compress" (tighter stops in strong trends) or "Expand" (wider stops in strong trends).

ADX settings

• Smoothing: The period used for the final ADX smoothing calculation.
• DI Length: The period used for calculating the Directional Indicators (+DI and -DI).

SuperTrend settings

• ATR Length: The lookback period for the Average True Range used in the SuperTrend calculation.
• Factor: The base multiplier for the SuperTrend. This is the starting value before ADX modifications are applied.

FAQ

How do I use the SuperTrend ADX?

You can use it to identify trend direction and momentum. Look for green lines and "B" labels for bullish trends, and red lines and "S" labels for bearish trends, while observing how the line adapts to trend strength.

What is the difference between Expand and Compress?

Expand makes the indicator more "forgiving" during strong trends by moving the line further from price, while Compress makes it more sensitive, potentially signaling a trend change sooner as momentum peaks.

How can I access the SuperTrend ADX?

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