OPEN-SOURCE SCRIPT
Updated ADX EMA's Distance
It is well known to technical analysts that the price of the most volatile and traded assets do not tend to stay in the same place for long. A notable observation is the recurring pattern of moving averages that tend to move closer together prior to a strong move in some direction to initiate the trend, it is precisely that distance that is measured by the blue ADX EMA's Distance lines on the chart, normalized and each line being the distance between 2, 3 or all 4 moving averages, with the zero line being the point where the distance between them is zero, but it is also necessary to know the direction of the movement, and that is where the modified ADX will be useful.
This is the well known Directional Movement Indicator (DMI), where the +DI and -DI lines of the ADX will serve to determine the direction of the trend.
This is the well known Directional Movement Indicator (DMI), where the +DI and -DI lines of the ADX will serve to determine the direction of the trend.
Release Notes
It is well known to technical analysts that the price of the most volatile and traded assets do not tend to stay in the same place for long. A notable observation is the recurring pattern of moving averages that tend to move closer together prior to a strong move in some direction to initiate the trend, it is precisely that distance that is measured by the blue ADX EMA's Distance lines on the chart, normalized and each line being the distance between 2, 3 or all 4 moving averages, with the Zero Line being the point where the distance between them is zero, but it is also necessary to know the direction of the movement, and that is where the modified ADX will be useful.This is the well known Directional Movement Indicator (DMI), where the +DI and -DI lines of the ADX will serve to determine the direction of the trend.
The Alert Line can be equal to or different from the Zero Line, because it sends an alert every time the distance curve between the moving averages crosses the Alert Line; that is, if both lines are equal to zero, the script provides the same signal as the crossing of the moving averages.
Release Notes
It is well known to technical analysts that the price of the most volatile and traded assets do not tend to stay in the same place for long. A notable observation is the recurring pattern of moving averages that tend to move closer together prior to a strong move in some direction to initiate the trend, it is precisely that distance that is measured by the blue ADX EMA's Distance lines on the chart, normalized and each line being the distance between 2, 3 or all 4 moving averages, with the Zero Line being the point where the distance between them is zero, but it is also necessary to know the direction of the movement, and that is where the modified ADX will be useful.This is the well known Directional Movement Indicator (DMI), where the +DI and -DI lines of the ADX will serve to determine the direction of the trend.
The Alert Line can be equal to or different from the Zero Line, because it sends an alert every time the distance curve between the moving averages crosses the Alert Line; that is, if both lines are equal to zero, the script provides the same signal as the crossing of the moving averages.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.