ADX (Average Directional Index)¶
What it shows: how strong the trend is, from 0 to 100, without saying which way. It also has two direction lines: +DI (up-moves) and −DI (down-moves).
How people use it: ADX above 25 means a clear trend; below 20 a sideways market. People use it as a filter: trend strategies only trade when ADX is high, range strategies when it is low. +DI above −DI suggests the trend is up.
Pairs well with: any entry signal. For example a moving-average cross plus ADX above 25 skips many crosses in sideways markets.
Settings¶
| Setting | Default | What it does |
|---|---|---|
| Length | 14 | How many candles are smoothed. Shorter reacts sooner to new trends, with more false readings. |
| Trend threshold | 25 | The level the "trending" condition uses. Higher lets fewer trades through (only strong trends). |
You set the defaults on the Indicators page. A condition can use its own settings, which override the defaults for that condition only.
Ready-made conditions¶
| For | Condition | Fires when |
|---|---|---|
| Buy or sell | ADX above 25 (trending) | every candle ADX is above 25 |
| Buy or sell | ADX below 20 (ranging) | every candle ADX is below 20 |
"Above", "below", "is" and "rising" / "falling" stay true on every candle the state lasts, so they can fire many candles in a row. Numbers in the condition names follow your settings on the Indicators page.
Warnings you may see¶
- "ADX(14) only moves between 0 and 100, so 200 can never be reached." (also for ADX(14) +DI, ADX(14) −DI): a number you typed is outside the range this line can take, so the condition can never be true (or is always true). Check the number. You can still save it.
- "Length must be between 1 and 1000" / "Length must be a whole number": shown in the condition editor when a condition's own value is out of range. Fix the number; the condition can't be saved until then.
Where they show: on the Strategies page, open Create entry conditions / Edit entry conditions (or the exit ones). Each condition's messages appear right under it. The setting messages ("must be between", "whole number", "must be one of", "must be smaller than") start with the indicator's short name, for example "MACD: Fast must be between 1 and 1000", and keep the conditions from being saved until fixed. The other warnings never block saving and are repeated in the strategy's Entry or Exit section, starting with the condition's name.
Good to know¶
- It is worked out from each candle's high, low and close (not volume).
- ADX is slow; it rises well after a trend has started.
- It needs some history before its value settles: 12 × the length candles (168 at length 14), because it smooths twice. Apathia loads that history for you.
- The "ranging" condition uses a fixed 20, not your Trend threshold.
- ADX shows trend strength, not direction, so the same conditions are offered for buys and sells.