✓ Mathematical
◆ The PatternADX measures trend strength (not direction) on a 0–100 scale.
The Average Directional Index — Wilder's trend strength indicator (1978).
+DI = smoothed +DM / ATR
−DI = smoothed −DM / ATR
DX = |+DI − −DI| / (+DI + −DI) × 100
ADX = smoothed DX (default 14)
−DI = smoothed −DM / ATR
DX = |+DI − −DI| / (+DI + −DI) × 100
ADX = smoothed DX (default 14)
ADX values:
• 0–25 → absent or weak trend → avoid trend-following strategies
• 25–50 → strong trend
• 50–75 → very strong trend
• 75–100 → extremely strong (rare)
ADX doesn't tell direction — use +DI vs −DI for that.
• 0–25 → absent or weak trend → avoid trend-following strategies
• 25–50 → strong trend
• 50–75 → very strong trend
• 75–100 → extremely strong (rare)
ADX doesn't tell direction — use +DI vs −DI for that.
Pattern bridge: ADX measures trend strength without direction — like standard deviation measuring spread without sign. In ML, PCA eigenvalues measure how much variance each component explains.