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Miha Kralj
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Co-authored-by: Claude Opus 4.5 <noreply@anthropic.com> Co-authored-by: aider (openrouter/anthropic/claude-sonnet-4) <aider@aider.chat> Co-authored-by: Warp <agent@warp.dev>
3.7 KiB
3.7 KiB
Dynamics
"The trend is your friend, but only if you know its strength." Unknown
Dynamics indicators measure trend strength, speed, and direction. Unlike momentum indicators that measure rate of change, dynamics indicators answer: "Is there a trend, and how strong is it?" Critical for filtering signals and avoiding whipsaws in ranging markets.
Indicator Status
| Indicator | Full Name | Status | Description |
|---|---|---|---|
| ADX | Average Directional Index | Trend strength 0-100. Direction-agnostic. <20 weak, >40 strong. | |
| ADXR | Average Directional Movement Rating | Smoothed ADX. Average of current and N-period ago ADX. | |
| ALLIGATOR | Williams Alligator | = | Three SMAs (Jaw, Teeth, Lips). Spread indicates trend strength. |
| AMAT | Archer Moving Averages Trends | Multiple EMA alignment. Requires fast/slow EMA plus directional confirmation. | |
| AROON | Aroon | Time since high/low. Aroon Up/Down measure recency of extremes. | |
| AROONOSC | Aroon Oscillator | Aroon Up minus Aroon Down. Single line: +100 to -100. | |
| CHOP | Choppiness Index | = | Trendiness measure. High values = choppy. Low = trending. |
| DMX | Jurik DMX | Smoothed bipolar DMI using Jurik smoothing. Low noise. | |
| DX | Directional Movement Index | = | Raw directional strength. Unsmoothed ADX component. |
| HT_TRENDMODE | HT Trend vs Cycle | = | Ehlers Hilbert Transform. Binary trend/cycle mode detection. |
| ICHIMOKU | Ichimoku Cloud | = | Five-line system. Cloud defines support/resistance zones. |
| IMI | Intraday Momentum Index | = | RSI variant using open-close range. Intraday overbought/oversold. |
| QSTICK | Qstick | = | MA of (Close - Open). Positive = buying pressure. |
| SUPER | SuperTrend | ATR-based trailing stop. Flips on breakout. Color-coded direction. | |
| TTM | TTM Trend | = | Fast 6-period EMA. Color-coded trend from John Carter. |
| VORTEX | Vortex Indicator | = | VI+ and VI- measure positive/negative trend movement. |
Status Key: Implemented | =� Planned
Selection Guide
| Use Case | Recommended | Why |
|---|---|---|
| Trend strength filter | ADX | Industry standard. <20 avoid trend trades; >40 strong trend. |
| Trend direction + strength | AROON, AROONOSC | Measures how recently price made new highs vs lows. |
| Trend following stops | SUPER | ATR-based dynamic support/resistance. Clear entry/exit. |
| Low-noise direction | DMX | Jurik smoothing reduces whipsaws vs standard DMI. |
| Trend confirmation | AMAT | Multiple timeframe EMA alignment required for signal. |
| Choppy market detection | CHOP, ADX | CHOP high or ADX low means avoid trend strategies. |
ADX Interpretation
| ADX Value | Trend Strength | Recommended Action |
|---|---|---|
| 0-20 | Absent or weak | Avoid trend-following. Use mean reversion. |
| 20-25 | Emerging | Early trend possible. Confirm with direction. |
| 25-40 | Strong | Trend-following strategies work well. |
| 40-50 | Very strong | Trend mature. Watch for exhaustion. |
| 50+ | Extreme | Unsustainable. Reversal risk increases. |
ADX tells strength, not direction. Use +DI/-DI or other direction indicators alongside.
Dynamics vs Momentum
| Aspect | Dynamics | Momentum |
|---|---|---|
| Measures | Trend existence/strength | Rate of price change |
| Direction | Often direction-agnostic | Usually directional |
| Best for | Filtering | Timing |
| Examples | ADX, CHOP, AROON | RSI, MACD, ROC |
Use dynamics to filter when to trade. Use momentum to time entries/exits.