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This indicator is different from the conventional indicator by an additional set of parameters. The ADX line changes color depending on the location of the +DI and -DI lines relative to each other.
Indicator Inputs
- Period — indicator calculation period;
- Method — select the averaging method: simple, exponential, smoothed, linear-weighted;
- Apply to — select the applied price: Close, Open; High; Low; Median; Typical; Average Weighted;
By default, the directional lines are colored in the following colors:
- Dark green — value of the indicator of the positive price movement (+DI – positive directional index);
- Brown — value of the indicator of the negative price movement (-DI – negative directional index).
The Average Directional Movement Index (ADX) line is colored:
- Yellow — no trend;
- Light green — buy signal, the +DI line is above -DI with growing ADX;
- Red — sell signal, the -DI line is above +DI with growing ADX.
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