The ADX smoothed indicator works a lot like the conventional ADX. It enables traders to identify trends on the price chart. The ADX smoothed indicator evens out the signal line.
Features of the ADX Smoothed Indicator
The ADX Smoothed Indicator is a momentum oscillator that indicates a trend’s direction. The indicator functions like the conventional ADX (average directional index). It does, however, even out the signal line.
The indicator represents the entire market trend with three lines: ADX, Di+, and Di-. A crossover between Di+ and Di indicates an opportunity to trade. The overbought and oversold levels can also be found because this indicator varies from 0 to 100. The indicator’s benefit is that it functions in any time frame.
How the Indicator Can Benefit You
The indicator can give clear trade entry signals. These signals lie in Di+ and Di-crossovers. You can go long when Di+ crosses Di-, a buy signal.
On the other hand, you can go short when Di- crosses Di+, which indicates a sell signal. You can use the smoothed ADX indicator with moving averages if you need more signal confirmation.
Indicator Setting Description
You can edit the inputs to match your trading specifications.
Period: The default value is 10. It allows you to edit the ADX line value.
Alpha1: The default value is 0.25. It allows you to edit the Di value.
Alpha2: The default value is 0.33. It allows you to edit the Di value.
PriceType: The default value is 0. It allows you to edit the price type.
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