ADX Trend

 Directional Movement Index (DMI) Based Trend Strategy
This strategy utilizes the Average Directional Index (ADX) along with +DI / -DI cross-comparisons to identify trend strength and enter trades only when the market shows directional clarity. It’s ideal for traders who prefer to avoid noise and whipsaws by focusing on confirmed, strong trends.

Indicator Logic:
ADX (Average Directional Index):
Measures the strength of a trend, regardless of direction. Higher values mean stronger trends.
Default length: 14, with a customizable minimum threshold (default: 25) to define what qualifies as "strong."

+DI (Positive Directional Index) vs -DI (Negative Directional Index):
These values define trend direction:

+DI > -DI → Bullish momentum

-DI > +DI → Bearish momentum

Entry Logic:
Long Entry:
Occurs when:

ADX is above the threshold, confirming trend strength

+DI > -DI, indicating bullish control

No open position exists

Short Entry:
Occurs when:

ADX is above the threshold

-DI > +DI, indicating bearish control

No open position exists

Exit Logic:
Exit Long:
If -DI overtakes +DI, signaling potential bearish reversal

Exit Short:
If +DI overtakes -DI, signaling bullish pressure building up

This allows for responsive exits based on dynamic trend changes, minimizing exposure during weak reversals.

Strategy Features:
Filtered Trend Entries: No trades during choppy or low-ADX conditions

Auto Flip via Exit Logic: Position reversals are handled cleanly using DI dominance shifts

Clean & Lightweight: No clutter — just logic and momentum

Realistic Settings: Includes 0.05% commission and up to 5 entries (pyramiding)

Suggested Timeframes:
Works well on 1h, 4h, and daily timeframes, especially for assets prone to long trend phases such as major forex pairs, crypto majors, and high-volume stocks.

Final Notes:
The ADX is a powerful trend strength tool but may lag in fast-moving markets. This strategy mitigates noise with strict entry rules but still requires tuning based on asset behavior.

Note: Different assets may require specific parameter adjustments. Users are responsible for optimizing the strategy settings for the asset they trade. Please ensure you fine-tune the parameters according to your trading pair.