This advanced trading indicator, inspired by Dr. Charles B. Schaap's book "ADXcellence: Power Trend Strategies", leverages the principles of the Average Directional Index (ADX) to help traders identify and exploit trending conditions in the market.
The ADXcellence Indicator uses multiple levels of analysis to evaluate the strength and direction of trends.
In addition to the classic ADX+DMI input settings, these features are included:
ADX Slope Signal: This parameter, controls the sensitivity of the ADX slope, which will indicate when the trend strength is increasing or decreasing.
The indicator provides three trend levels: strong trend level, trending level, and low volatility level, which can be customized to suit various trading strategies.
The color gradients for the ADX, DI+, and DI- lines are designed to visually represent the trend strength from the low volatility level to the strong trend level. The indicator also uses a dynamic background color, highlighting the periods when the ADX is rising. The color will vary depending on the dominant DI.
The ADXcellence Indicator also offers a unique feature of dynamically adjusting the fill between DI+ and DI-, with the color and fill intensity changing based on the relative value of the two.
This indicator is a powerful tool for traders who use trend-following strategies and is best used in conjunction with other technical analysis tools to confirm signals and avoid potential false signals.
Remember, no indicator is perfect and every trading strategy should include risk management and proper due diligence.
I’d like to ask you which signals of buy/sell do you find most suitable?
mastsan
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Hello, this is a great indicator. Is there a way to change the background colors to make them darker when the DMI +/- cross to indicate uptrend or downtrend? I use a lighter background for my charts and unable to see the background colors. Thanks
FractalTrade_
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@mastsan, Hi, will look into this and will update, thanks for the comment!
Orph5781
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Awesome work! Thanks! Which values would you typically suggest for usa stocks and crypto?
FractalTrade_
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Hi @Orph5781, default ones are just fine for both!
Orph5781
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@FractalTrade15, is it possible to include strong buy/sell signals and alarm in future updates, Sir? Thanx
PyrrhoFarmer
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Saw your post on Twitter. I'll check this out in the morning.
PandaTrader13
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nice work. any way we can tinker with the strength of the shading in the background to our liking.
jochendv1979
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I shortly backtested this one with the RSI on BTC weekly chart and must say it looks very promising! Well done mate! Will test some other pairs very soon. Seems like an excellent tool for long term investing :) Thanks!