ADX Squeeze For ThinkOrSwim

[antwerks]

I love the ADX indicators of all kinds but sometimes due to my physical computer set up I have "alot going on" so I needed something more simplistic in a visual. This is where this indicator comes from, https://tos.mx/!unAvUQX4. (this can be used on all timeframes) This indicator gives a visual with labels of stocks where:

• ADX, DI+, and DI- are all below a threshold (default 25)
• And they stay under that threshold for a defined number of consecutive days (default 5)

This is a volatility compression setup — often referred to as a "squeeze" — which can precede breakouts or reversals. The assumption is Low directional movement (low ADX and both DI lines compressed) is an area of potential buildup before expansion.

Pros:

1. Simple but Effective Squeeze Logic: The use of ADX + DI+ and DI- being under a shared threshold is a good proxy for sideways, low-momentum markets.
2. Customizable Settings: Threshold and duration (requiredDays) are inputs, allowing flexibility to test across various tickers and timeframes.
3. Efficient Scan Condition: The logic is optimized and clean, avoiding redundant calculations.
4. Useful Visual Labels: Helpful for manual review of ADX/DI+/- values at the point of scan.

Labelling Meaning:

• Color Key​

  
  

  Color	Meaning
  Green	Bullish breakout (ADX expanding, DI+ > DI−, volume confirms)
  Red	Bearish breakout (ADX expanding, DI− > DI+, volume confirms)
  Yellow	Squeeze in progress (volatility compression)
  Gray	No setup (no squeeze, no breakout)

Phase Label Breakdown:

Label Text	Meaning	Color
PHASE: Bullish Breakout	Squeeze resolved upward; DI+ > DI−; ADX rising; vol confirms	Green
PHASE: Bearish Breakout	Squeeze resolved downward; DI− > DI+; ADX rising; vol confirms	Red
PHASE: Squeeze Compression	Compression in play; waiting for breakout	Yellow
PHASE: Neutral / No Setup	No squeeze; no valid signal yet	Light Gray

 

[antwerks]

This does pair well with Sam4Cok@Samer800 conversion of "Stochastic RSI 3in1 & Volatility peaks + ADX by AGU". I have added a top "highline" of 80 as a plot to identify bearish reversals and use the cross of the Stoc 1 and 3 line as a bullish signal. https://tos.mx/!D3UfSvaA

 

[hboogie]

I love the ADX indicators of all kinds but sometimes due to my physical computer set up I have "alot going on" so I needed something more simplistic in a visual. This is where this indicator comes from, https://tos.mx/!T7R02R04. (this can be used on all timeframes) This indicator gives a visual with labels of stocks where:

• ADX, DI+, and DI- are all below a threshold (default 25)
• And they stay under that threshold for a defined number of consecutive days (default 5)

This is a volatility compression setup — often referred to as a "squeeze" — which can precede breakouts or reversals. The assumption is Low directional movement (low ADX and both DI lines compressed) is an area of potential buildup before expansion.

Pros:

1. Simple but Effective Squeeze Logic: The use of ADX + DI+ and DI- being under a shared threshold is a good proxy for sideways, low-momentum markets.
2. Customizable Settings: Threshold and duration (requiredDays) are inputs, allowing flexibility to test across various tickers and timeframes.
3. Efficient Scan Condition: The logic is optimized and clean, avoiding redundant calculations.
4. Useful Visual Labels: Helpful for manual review of ADX/DI+/- values at the point of scan.

Labelling Meaning:

• Color Key​

  
  

  Color	Meaning
  Green	Bullish breakout (ADX expanding, DI+ > DI−, volume confirms)
  Red	Bearish breakout (ADX expanding, DI− > DI+, volume confirms)
  Yellow	Squeeze in progress (volatility compression)
  Gray	No setup (no squeeze, no breakout)

Phase Label Breakdown:

Label Text	Meaning	Color
PHASE: Bullish Breakout	Squeeze resolved upward; DI+ > DI−; ADX rising; vol confirms	Green
PHASE: Bearish Breakout	Squeeze resolved downward; DI− > DI+; ADX rising; vol confirms	Red
PHASE: Squeeze Compression	Compression in play; waiting for breakout	Yellow
PHASE: Neutral / No Setup	No squeeze; no valid signal yet	Light Gray

View attachment 24986

Ant, this looks amazing. I tried importing the link above but it defaulted into the upper price area and only gave me labels ? I'm not seeing the lower indicator.

Thanks

 

[antwerks]

Ant, this looks amazing. I tried importing the link above but it defaulted into the upper price area and only gave me labels ? I'm not seeing the lower indicator.

Thanks

https://tos.mx/!unAvUQX4 Sorry here is the corrected lower version

 

[strehsum]

I enhanced it for my own use in case anyone would like to use this version:
http://tos.mx/!38DdGlCX

Key Improvements:

1. Modular Inputs
   • Added toggles to enable/disable filters easily.
   • Customizable volume spike parameters
2. Cooldown Period
   • Prevents repeated signals within cooldownBars after a breakout.
3. Visual Enhancements
   • Breakout arrows for clearer chart signals.
   • Gradient-free labels showing squeeze duration (e.g., Squeeze (7 bars)).
4. Optimized Logic
   • Stored repeated conditions as variables.
   • Streamlined directional filters with allowBull/allowBear.
5. Professional Labels
   • Consolidated all labels into a logical group at the bottom.
   • Added color-coding for quick visual scanning.

Joe

 

[jthoele]

Ant, love the indicator.... thank you! I noticed the DTE ADX Trend Alert Indicator on your chart that looks interesting. Can you post that code?

 

[hboogie]

I enhanced it for my own use in case anyone would like to use this version:
http://tos.mx/!38DdGlCX

Key Improvements:

1. Modular Inputs
   • Added toggles to enable/disable filters easily.
   • Customizable volume spike parameters
2. Cooldown Period
   • Prevents repeated signals within cooldownBars after a breakout.
3. Visual Enhancements
   • Breakout arrows for clearer chart signals.
   • Gradient-free labels showing squeeze duration (e.g., Squeeze (7 bars)).
4. Optimized Logic
   • Stored repeated conditions as variables.
   • Streamlined directional filters with allowBull/allowBear.
5. Professional Labels
   • Consolidated all labels into a logical group at the bottom.
   • Added color-coding for quick visual scanning.

Joe

This is interesting can you post some charts on how you use it ? Thank you!!

 

[antwerks]

Ant, love the indicator.... thank you! I noticed the DTE ADX Trend Alert Indicator on your chart that looks interesting. Can you post that code?

View attachment 25025

https://tos.mx/!yXPl69UD