The ADX rule is a trend-strength filter with directional confirmation via +DI and −DI. See ADX glossary for indicator background.
For the indicator formula, see ADX — Formula.
Signals
| Condition | Signal |
|---|---|
| ADX ≥ threshold and +DI > −DI | Buy |
| ADX ≥ threshold and −DI > +DI | Sell |
| ADX < threshold | No signal |
Default parameters
| Parameter | Default |
|---|---|
| period | 14 |
| threshold | 25 |
Where to use it
Entry, increase, reversal, exit, and especially as a directional filter alongside other rules.
Tips
- Raise threshold (e.g. 30) for fewer but stronger-trend signals.
- Use in filters.entry so entries only fire when trend strength confirms your MA or MACD setup.
- Needs enough candle history (roughly 2× period bars) before evaluating.
Example
period 14, threshold 25 on EUR/USDT 4h (if listed). ADX 31, +DI 22, −DI 14 → buy. ADX 29 but +DI 12, −DI 20 → sell. ADX 22 → no signal even if DI lines cross.