OPEN-SOURCE SCRIPT
ADX Color Coded Bar
Aktualisiert
I use the Average Directional Index quite a lot in my trading both manual and automatic trading so i thought i would make it a little easier for myself and others to see if the ADX is above or below a certain value and to allow space on the chart for other indicators. This is done by plotting a green and red bar, green when the ADX is above a certain value and red when the ADX is below it.
Trading in the direction of a strong trend reduces risk and increases profit potential. The ADX is used to determine when the price is trending strongly. In many cases, it is the ultimate trend indicator. After all, the trend is your friend. ADX is usually plotted as a single line with values ranging from a low of zero to a high of 100. ADX is non-directional and registers trend strength whether price is trending up or down.
When the value of the ADX is going up above 20 which is the threshold i like to use, it means that there is more likely to be a confident move. So if you get an entry signal when the ADX bar is red the price is more likely to be in an area of consolidation where fakeouts could happen. It might be a good idea to stay away from entering trades here or remember to take some profits early and set the stop loss to break even.
Keep in mind that the ADX is a lagging indicator and not leading.
Trading in the direction of a strong trend reduces risk and increases profit potential. The ADX is used to determine when the price is trending strongly. In many cases, it is the ultimate trend indicator. After all, the trend is your friend. ADX is usually plotted as a single line with values ranging from a low of zero to a high of 100. ADX is non-directional and registers trend strength whether price is trending up or down.
When the value of the ADX is going up above 20 which is the threshold i like to use, it means that there is more likely to be a confident move. So if you get an entry signal when the ADX bar is red the price is more likely to be in an area of consolidation where fakeouts could happen. It might be a good idea to stay away from entering trades here or remember to take some profits early and set the stop loss to break even.
Keep in mind that the ADX is a lagging indicator and not leading.
Versionshinweise
Added the option to use another timeframe.Changed the default threshold to 25.
Open-source Skript
Ganz im Sinne von TradingView hat dieser Autor sein/ihr Script als Open-Source veröffentlicht. Auf diese Weise können nun das Script auch andere Trader verstehen und prüfen. Vielen Dank an den Autor! Sie können das Script kostenlos verwenden. Die Nutzung dieses Codes in einer Veröffentlichung wird in unseren Hausregeln reguliert. Sie können es als Favoriten auswählen, um es in einem Chart zu verwenden.
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