TREND STRENGTH INDICATOR
ADX / DMI
Separates estimated trend strength from directional pressure.
Start with the input, not the story.
ADX smooths directional movement; +DI and -DI describe its direction.
Plain-language formula
Directional movement is normalised by true range, then smoothed into DI and ADX values.
Platform implementations can differ in price input, smoothing, indexing and rounding. Record the exact settings and provider before comparing results.
03 / USEFUL REGIME
Where it may help
Distinguishing directional from non-directional regimes.
04 / WEAK REGIME
Where it struggles
Calling turns: ADX can rise in either direction and often reacts after a move begins.
Add a different measurement.
EMAATRBreakout rules
A complementary tool should answer a different question, such as volatility, regime or position risk. Test the base rule before testing the combination.
The shortcut to avoid
Reading a high ADX as bullish rather than simply strong.
A testable next step
Use ADX only as an eligibility filter and test thresholds as ranges, not magic numbers.