adx

Use the ADX indicator to determine when to buy and sell. This indicator measures the strength of a trend, allowing AILidex to buy during strong uptrends and sell during strong downtrends. AILidex uses ADX together with Directional Index.

ADX is a popular technical analysis tool used by traders to identify trends in the market. It is calculated using a series of calculations that take into account the highs and lows of price movements over a specified time period. Generally, an ADX reading above 25 indicates a strong trend, while a reading below 20 suggests a weak trend. The ADX can be used in conjunction with other indicators to confirm trading signals and help traders make informed decisions.

How to work with it
Buy method conditions
Buy allowed when ADX value exceeds ‘ADX level’ and DI+ is above DI-.

Sell method conditions
Sell allowed when ADX value exceeds ‘ADX level’ and DI- is above DI+.

INFO
Gain protection is optional for this method.

Be aware that this can lead to sell orders below your break-even point.

Trading example

Example of how trading with this strategy can perform. Details and settings.

The infographic below describes what triggers trades with this strategy.

Buy settings
Buy settings are the primary trigger for buy orders. These parameters control the execution of buy orders when using adx as buy method.

Buy enabled
Description
Values
Order types
Name
Set this to false to prevent AILidex from placing buy orders.

Buy Level
Description
Values
Order types
Name
This sets entry point for TAKE_BUY at a percentage below the lowest EMA.

When you set this to 1, the entry point will be set 1% below the currently lowest EMA.

Sell settings
Sell settings are the primary trigger for sell orders. These parameters control the execution of sell orders when using adx as sell method.

Sell enabled
Description
Values
Order types
Name
Set this to false to prevent AILidex from placing sell orders.

Gain
Description
Values
Order types
Name
This sets the minimum target for selling when DOUBLE_CHECK_GAIN is enabled.

Indicator settings
Relevant indicators for trading with ADX

These settings have a direct effect on trading with adx.

Period
Description
Values
Order types
Name
This sets the candlestick period used for trading, this affects all indicators within the strategy.

Only use supported values. The trading settings editor suggests valid values for the selected exchange..

Setting a short period allows you to trade on shorter trends, but be aware that these will be noisier than longer periods.

ADX Level
Description
Values
Order types
Name
Sets the minimum trend level that needs to be reached for orders to be allowed.

When set to 25, trades will be placed as soon as ADX is 25 or higher.

DI Period
Description
Values
Order types
Name
Sets the number of candles used to calculate ADX.