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v0.8.6: update indicator docs, ndepend tooling, ALMA refactor, gitignore cleanup
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@@ -13,9 +13,7 @@
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| **PineScript** | [adx.pine](adx.pine) |
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- The Average Directional Index is the industry-standard measure of trend strength, ignoring direction entirely to focus on the velocity of price exp...
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- Parameterized by `period`.
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- Output range: Varies (see docs).
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- Requires `period * 2` bars of warmup before first valid output (IsHot = true).
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- **Similar:** [ADXR](../adxr/Adxr.md), [DX](../dx/Dx.md) | **Complementary:** Moving averages for direction | **Trading note:** Wilder's trend strength gauge; >25 trending, <20 ranging. Does not indicate direction.
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- Validated against TA-Lib, Skender, and Tulip reference implementations where available.
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The Average Directional Index is the industry-standard measure of trend strength, ignoring direction entirely to focus on the velocity of price expansion. Wilder's pipeline decomposes range into directional movement (+DM, -DM), normalizes against True Range to produce directional indicators (+DI, -DI), derives a directional index (DX) from their ratio, then smooths DX with a final RMA pass. The double-smoothed architecture creates significant lag but exceptional noise rejection, making ADX a regime filter rather than a timing tool. Output is unbounded above 0, with readings above 25 conventionally indicating trending conditions and below 20 indicating choppy markets.
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@@ -143,4 +141,4 @@ The recursive RMA passes block SIMD across bars. The TR/DM initial computation (
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## Resources
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- Wilder, J.W. — *New Concepts in Technical Trading Systems* (Trend Research, 1978)
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- PineScript reference: `adx.pine` in indicator directory
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- PineScript reference: `adx.pine` in indicator directory
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