OPEN-SOURCE SCRIPT
ADX & DI trend exhaustion
An EMA is applied to the ADX in order to catch the exhaustion of a trend (i.e. ADX line crossunder EMAADX line) or the possible formation of a new one. In the first case, we would wait a confirmation signal, which happens when the crossunder has a value greater then 50. A new trend is created when the difference between the ADX and the EMAADX is positive, with ADX greater then 20. As confirmation, we would have the DI+ greater then 20 e the DI- smaller then 20 (this would trigger a bullish sentiment, bearish for the opposite), consequently the histogram will be display in green (red in the bearish case).
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.