Description
The SmartADX study is a modification of the regular Average Dircetional Index (ADX), which can be read as an oscillator. SmartADX comprises two levels that are used to analyze the behavior of the average plot.
Level 1 is the lower level; when ADX values fall below it, the ADX plot is shown in a different color (red by default), which is considered to signify a weak trend. By default, this level is placed at 15%.
Level 2 is the higher level; when ADX values rise above it, the ADX plot changes its color (to green by default), indicating a strong trend. By default, this level is set to 30%.
Input Parameters
| Parameter | Description |
|---|---|
length
|
The number of bars used to calculate ADX. |
level1
|
The percentage corresponding to the lower level. |
level2
|
The percentage corresponding to the higher level. |
|
|
The type of moving average to be used in calculations: simple, exponential, weighted, Wilder's, or Hull. |
Plots
| Plot | Description |
|---|---|
ADX
|
The ADX plot. |
Level1
|
The lower level plot. |
Level2
|
The higher level plot. |
Example*
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.