Holy Grail ADX Trading Setup for ThinkorSwim

[mc01439]

This chart looks awesome, would you mind sharing? I’ve been looking at your posts and you seem to have a lot of really really good stuff.

@dolomick - Sorry it took so long to reply. Here it the chart you requested. Please keep in mind that a pretty chart does not always deliver. Also consider that the trend reversal indicator re-paints and the FPL $ amount is not a true measure of the success of the indicator.

Caution - this is a test chart but there may be a few things you can use.

https://tos.mx/B6yezd6

 

[Gildes]

Best way to get in touch with you @skynetgen ?

 

[dvorakm]

//Created By Chris Moody on 11-18-2014
//Modded, YG, mashed together DMI + ADX
//Designed to go with ADX Trading System.
//Video Overview Explaining Setup
study(title="CM_ADX_V1", shorttitle="CM_ADX + DMI")
len = input(14, minval=1, title="DI Length")
lensig = input(14, title="ADX Smoothing", minval=1, maxval=50)


up = change(high)
down = -change(low)
trur = rma(tr, len)

plus = fixnan(100 * rma(up > down and up > 0 ? up : 0, len) / trur)
minus = fixnan(100 * rma(down > up and down > 0 ? down : 0, len) / trur)

sum = plus + minus
adx = 100 * rma(abs(plus - minus) / (sum == 0 ? 1 : sum), lensig)

osob=input(40,title="Exhaustion Level for ADX, default = 40")


col = adx <= 10 ? gray : adx > 10 and adx <= 20 and plus > minus ? #98FF98 :adx > 10 and adx <= 20 and plus < minus ? #E77471 : adx > 20 and adx <= osob and plus > minus ? lime :adx > 20 and adx <= osob and plus < minus? red: adx > osob and plus > minus ?green:adx > osob and plus < minus ?maroon:white
barcolor(col)
//plot(plus, color=lime, title="+DI", style=line, linewidth=3)
//plot(minus, color=red, title="-DI", style=line, linewidth=3)
plot(adx, color=col, title="ADX", style=columns)
plot(0, title="0 Line", style=line, linewidth=1, color=gray)


plot(10, title="10 Line", style=circles, linewidth=1, color=gray)

plot(20, title="20 Line", style=circles, linewidth=1, color=gray)

plot(osob, title="10 Line", style=circles, linewidth=1, color=gray)

 

[BenTen]

@dvorakm Take a look at this version: https://usethinkscript.com/threads/holy-grail-adx-trading-setup-for-thinkorswim.618/post-5454

 

[mercuryyy]

@mc01439 the lower indicators balanceofpower and wave_c can you please explain how you use them as related to the charts, i do see some patterns hoping on looking at it the right way.

Thank you for the chart really seems good.

 

[icantrade]

Thanks for sharing this chart.. looks awesome.. how do you trade this for stocks ? Is there any information available for the indicators you have used.. thanks in advance

 

[martyrjohn]

Can someone help me with making this scanner?

1. 14-period ADX is initially above 30 and rising
2. Prices retrace down to 20-period simple moving average (SMA)
3. Place buy order at the high of the bar that touches 20-period SMA

It is supposed to find up-trending stocks that are pulling back to the 20 period SMA.

 

[WayneG]

Hi, If you use a white background, change it to a color otherwise it will look really funky. wayneG

 

[steveng]

Well if you want "ultimate ADX/DMI" vwp, pullback entry indicator: I wrote one . Spend friggin 2 month polishing it to perfection . It is quite silly though even though its very accurate on trending stocks (over 95% accurate). ITs not hard to find pullback entry on trending stock. the trick is to find stock which will be trending (and not reverse/chop shortly)
here it is https://tos.mx/7X1yazr : guranteed to give perfect entry signals on trending stocks!

Very very late but do you have an explanation on how you use this? And what is the best way to find trending stocks?

 

[martyrjohn]

Can someone help me make a scanner that scans for an adx lower than 25 and rising?

 

[BenTen]

@martyrjohn Define lower than 25 and rising

 

[jma]

Hi Ben,
LBR uses 20-period exponential moving average instead of 20-period simple moving average. I guess the difference is not that huge. Do you have a script that uses 20-period EMA instead of 20-period SMA?
Thanks!

 

[BenTen]

@jma This is the snippet you need to modify:

def SMA = Average(price[-displace], length);

Take a look at the source code for EMA in ThinkorSwim and you can modify it based on that.

 

[jma]

Ok, thanks!

 

[svencool]

How would this piece be written in TOS?

• ADX(14) in this period is higher than ADX(14) in the last period

 

[svencool]

Well if you want "ultimate ADX/DMI" vwp, pullback entry indicator: I wrote one . Spend friggin 2 month polishing it to perfection . It is quite silly though even though its very accurate on trending stocks (over 95% accurate). ITs not hard to find pullback entry on trending stock. the trick is to find stock which will be trending (and not reverse/chop shortly)
here it is https://tos.mx/7X1yazr : guranteed to give perfect entry signals on trending stocks!

Does anyone know how to use this indicator?

 

[BenTen]

How would this piece be written in TOS?

• ADX(14) in this period is higher than ADX(14) in the last period

Last period as in the previous candle?

 

[svencool]

Last period as in the previous candle?

Yes Would it be ADX() from -1 bars ago is less than ADX()? I tried this and scanned the whole market and didn't get anything

 

[BenTen]

@svencool Here you go. If current ADX is greater than previous ADX then green else red.

#
# TD Ameritrade IP Company, Inc. (c) 2008-2021
#

declare lower;

input length = 14;
input averageType = AverageType.WILDERS;

plot ADX = DMI(length, averageType).ADX;
ADX.assignValueColor(if ADX > ADX[1] then color.green else color.red);

 

[svencool]

@svencool Here you go. If current ADX is greater than previous ADX then green else red.

#
# TD Ameritrade IP Company, Inc. (c) 2008-2021
#

declare lower;

input length = 14;
input averageType = AverageType.WILDERS;

plot ADX = DMI(length, averageType).ADX;
ADX.assignValueColor(if ADX > ADX[1] then color.green else color.red);

Can I use this bit of code to scan with.
I was trying to build a scan with this 3 items

• ADX(14) is higher than 30
• ADX(14) in this period is higher than ADX(14) in the last period
• Current bar high is higher than SMA(20) and current bar low is lower than SMA(20)