ADX Momentum cross + MacD + HH LL + Buy/Sell Signals and alerts

The ADX Momentum cross + MacD + HH LL + Buy/Sell Signals and alerts indicator is a comprehensive trend-following tool that combines multiple ADX calculations with MACD and price action levels to identify high-probability momentum shifts.

Usage

The script generates entry signals based on the confluence of three distinct ADX trend lines, the MACD histogram, and relative price position against recent Highs and Lows.

• Long Signals: Occur when the MACD line is above the signal line, the histogram is trending positively, and specific ADX momentum thresholds are crossed while price remains below recent high watermarks.
• Short Signals: Occur when the MACD line is below the signal line, the histogram is trending negatively, and the ADX relationship suggests bearish momentum while price is below recent lows.

The indicator provides two variations for both buy and sell conditions, differing in the specific sequence of the ADX crossing logic. Users can monitor these signals visually on the chart via arrows or set up alerts for automated monitoring.

Details

This script utilizes a combination of three ADX calculations (Standard, Mid, and Long-term) to capture various stages of trend development. By applying specific "lag" inputs to these calculations, the indicator measures the rate of change and the relative position of trend strength.

To filter out noise, the strategy incorporates:

1. MACD Filtering: Ensures signals align with broader momentum and histogram strength.
2. High/Low Lookbacks: Uses dynamic price channels (HH/LL) to ensure entries occur at favorable relative price points.
3. Multiple ADX Layers: Uses three different DI lengths and smoothing periods to identify "momentum crosses" where trend strength at different periodicities converges.

Settings

Market Structure

• Highs Length: Determines the lookback period for calculating the recent highest price.
• Lows Length: Determines the lookback period for calculating the recent lowest price.

ADX Configuration

• DI Length / Lengtha / Lengthb: Sets the Directional Index length for the three ADX components (Short, Medium, and Long-term).
• ADX Smoothing / Smoothinga / Smoothingb: Controls the smoothing factor for each of the three ADX calculations.

Lag & Timing

• Lag_Sell: Adjusts the historical offset used for calculating sell condition momentum.
• Lag_Mid: A shared lag setting that affects the comparative logic for all conditions.
• Lag_Buy: Adjusts the historical offset used for calculating buy condition momentum.

FAQ

How do I use the ADX Momentum cross + MacD + HH LL + Buy/Sell Signals and alerts?

You can use it to identify momentum-based entries by looking for the arrow signals on your chart. Ensure that the ADX settings follow an incremental structure (Low, Mid, High) for the best results in trend identification.

What are the best settings for this indicator?

While default settings are optimized for lower timeframes (5m) on BTC/USDT, a common starting point for other assets is using a 7, 14, 21 sequence for the DI Length and ADX Smoothing inputs.

Where can I access this script?

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