ADX Crossover Signals V1.0

The ADX Crossover Signals V1.0 indicator visualizes directional movement trends directly on the price chart by coloring candles and generating signals based on DI+ and DI- crossovers.

Usage

The indicator is designed for traders who utilize the Average Directional Index (ADX) and its component Directional Indicators (DI+ and DI-) to identify trend shifts.

• Trend Visualization: When the DI+ line is above the DI- line, the candles are colored with the Up Candle Color (default green), indicating a bullish trend environment. Conversely, when the DI- line is above the DI+ line, the candles are colored with the Down Candle Color (default red), indicating a bearish trend environment.
• Crossover Signals: The tool highlights the exact moment a crossover occurs by plotting "BUY" or "SELL" labels. A "BUY" signal appears when DI+ crosses above DI-, and a "SELL" signal appears when DI- crosses above DI+.

Details

The script utilizes the built-in Directional Movement Index (DMI) calculation. It evaluates the relationship between the Positive Directional Indicator (DI+) and the Negative Directional Indicator (DI-). By overlaying these transitions on the price chart via candle coloring and labels, it removes the need to constantly monitor a separate sub-pane for basic ADX crossover logic. The signals are optimized for the close of the bar to ensure the crossover is confirmed.

Settings

• Show BUY/SELL Signals: Toggles the visibility of the "BUY" and "SELL" labels on the chart.
• ADX Length: Determines the lookback period used for the DMI calculation (default is 14).
• ADX Smoothing: Sets the smoothing period applied to the ADX and DI lines (default is 10).
• Up Candle Color: Customizes the color of candles when DI+ is greater than DI-.
• Down Candle Color: Customizes the color of candles when DI- is greater than DI+.

FAQ

How do I interpret the signals?

A "BUY" signal suggests a potential bullish trend shift as the positive directional movement overcomes the negative movement. A "SELL" signal suggests a bearish shift.

Can I use this on any timeframe?

Yes, the indicator is compatible with any timeframe supported by the charting platform, though standard ADX settings are often tuned for daily or intraday charts.

How can I access ADX Crossover Signals V1.0?

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