In general, the bulls have the edge when +DI is greater than - DI, while the bears have the edge when - DI is greater. Crosses of these directional indicators can be combined with ADX for a complete trading system. SM ADX reading above 10 is considered as a strong trend. When plus DI cross above minus DI and ADX is above 10, buy position can be opened. For a sell signal, minus DI rise above plus DI and ADX is above 10. The SM ADX indicator eliminates many whip saw trades triggered by the normal ADX indicator.
The indicator parameters are ADX period, t3 smoothing period and smoothing factor. Parameter values are changed in the VTL editor. They are properly commented for ease of use.
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