ADX is a lagging trend indicator designed by J Welles Wilder and indicates the strength of a trend, or when a stock is in a strong uptrend or downtrend, or whether it's moving sideways. However, the ADX does not indicate if the trend as bullish or bearish. It merely indicates the strength of the current trend. Also, ADX does not give entry or exit signals. It does, however, give you some perspective on where the stock is in the trend.
HOW IS IT USED ? When ADX is between 0 and 20 it indicates that the stock is in a trading range and you'd need an oscillator indicator to determine entry and exit points. When ADX moves above 20 it indicates the beginning of a trend, though it could be an uptrend or a downtrend so remember to verify whether it is an uptrend or a downtrend before you commit to the trade. When ADX moves above 30 it indicates the start of strong trend ! Once ADX moves above 50 it becomes more probable that the trend is coming to an end and trading ranges developing again.
I added the possibility to add on the chart a 2nd timeframe for trend confirmation. Please comment in case you would have any recomandation.
If you found this script useful, a tip is always welcome... :)
Never mind. It doesn’t the longer time frame might change while the first one is done.
KenLeShim
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As clarified in PM, if TV puts a repaint warning while setting an alert, it doesn't mean that the indicators repaints ! It just means that a multi time frame code is present in the indicator...