Skip to main content
Track Average Directional Index
42 / 56
Search the archiveLibrary
Library

2012issue C1175-78

Clustered average-directional-index traces as a trend-start filter

The archive presents a modified directional movement index that draws three average-directional-index traces and matching plus-directional and minus-directional traces. A trend-filter reading waits for cluster-convergence and then lines that date up with the price pane.

  • The clustered studies modify the classic directional movement index. They do not introduce a new price input.
  • Matching lookbacks produce an adx-cluster, a plus-dmi-cluster, and a minus-dmi-cluster that can be read together or as three separate studies.
  • The trend-filter reading depends on cluster-convergence with the matching date on the price pane, which a shared vertical cursor can make explicit.
  • The same clustered studies are shown as chart overlays, an automated strategy wrapper, and spreadsheet reconstructions of the published average-directional-index arithmetic.
Entries in this reading3 entries
Directional Trend Indicator3 readingsCurrent trackAverage Directional Index71 readingsTrend filter137 readings

Same arithmetic, several lookbacks

The clustered construction is presented as a modified form of the classic directional movement index rather than a new price input. It draws three average-directional-index traces, three plus-directional traces, and three minus-directional traces on matching lookbacks.

The average-directional-index is a smoothed ratio of net directional movement to total directional movement, plotted here as several lookbacks in one pane instead of a single strength line.

Three clusters from one stack

The same stack can be inspected as three separate studies: an adx-cluster, a plus-dmi-cluster, and a minus-dmi-cluster. The adx-cluster is three average-directional-index traces computed on different lookbacks and drawn together. The plus-dmi-cluster is three plus-directional traces computed on the same lookbacks as the average-directional-index cluster. The minus-dmi-cluster is three minus-directional traces computed on the same lookbacks as the average-directional-index cluster.

Together, the plus-side and minus-side traces are the directional-trend-indicator: the paired plus-side and minus-side directional-movement traces that show which side of the market dominates on each lookback.

When the trend filter may be read

The trend-filter is a construction that withholds a trend-start reading until clustered directional-strength and directional-movement traces line up with contemporaneous price. Cluster-convergence is the visual alignment of the clustered traces with a matching date on the price pane, used as the candidate trend-start condition.

Reading the trend filter depends on lining up cluster-convergence points with the matching date on the price pane, which a shared vertical cursor can make explicit.

How the studies were shown

Worked examples apply the clustered studies to a daily equity-index futures series and to an hourly currency pair. The same clustered studies are packaged both as chart overlays and as an automated strategy wrapper.

Spreadsheet reconstructions

Spreadsheet reconstructions treat the published average-directional-index arithmetic as the computational core and can add the plus-directional component for a fuller cluster view. The average-directional-index formulas can be rearranged so the same arithmetic still holds when historical rows are stored newest-first.

Educational research material, not investment advice. Historical source context does not establish present-day performance.
42 of 56 in the Average Directional Index track
201267-71 pp.Next on Average Directional IndexAverage Directional Index cluster filters for trend-start signalsRead each of the Average Directional Index, the plus directional indicator, and the minus directional indicator as a same-component trio of short lookbacks so cluster congestion, not a single-period reading, marks candidate trend starts and possible tops or bottoms.
All readings on this track · 56 readings
  1. 1986Cycle-aligned directional trend indicator
  2. 1987What crossover and directional entry rules actually compare
  3. 1988A directional-line cross needs a trend filter, an extreme-point rule, and a dollar stop
  4. 1988Constructing true range by offset addressing
  5. 1988Constructing directional movement from bar range
  6. 1988Average directional index construction: recursive smoothing and lookback offset
  7. 1988Staged Average Directional Index construction with Relative Strength Index confirmation and stop alerts
  8. 1988Average Directional Index construction with frozen true range and directional rules
  9. 1991Constructing the average directional index from range expansion and true range
  10. 1991Constructing five-session forecasts from stochastic, ADX, and MACD inputs
  11. 1993Constructing the average directional index from directional movement and true range
  12. 1993Confirming n-bar breakouts with ADX and DX filters
  13. 1994Constructing a Bollinger band-width trend filter
  14. 1994A pre-trade checklist that can refuse a long three ways
  15. 1997An ADX threshold and a moving average as a trend filter
  16. 1998Regime filters for mutated indicators
  17. 1999Building the average directional index from range extension and true range
  18. 2000Evaluating ADX, RSI, and moving averages in a multi-stock warehouse
  19. 2000Stochastic pop as a filtered continuation setup
  20. 2000Onset and exit from one average directional index
  21. 2002Joint ADX and MACD readout for trend strength and direction
  22. 2003Adaptive Donchian breakout with implied volatility and volume
  23. 2004The average directional index as a regime gate for the relative strength index and the stochastic oscillator
  24. 2004Constructing true-range-specified volume as a directional filter
  25. 2005Constructing a multi-filter penny stock breakout procedure
  26. 2005Construct one playbook that flips with session regime
  27. 2005Combining Bollinger Bands, the average directional index, and Fibonacci retracement on currency pairs
  28. 2006Assembling an adaptive price zone from double-smoothed averages
  29. 2006An ADX strength gate for MACD and the stochastic oscillator
  30. 2007Directional movement as a filter plus trigger
  31. 2007Constructing a veto-first trend permission stack
  32. 2007ADX gates for trend end, range, and reversal
  33. 2008Constructing a nine-cell directional-ratio grid
  34. 2008Average directional index and directional trend indicator lookbacks as trend-filter parameters
  35. 2008A holding-matched market lens from averages and directional-line crosses
  36. 2008A nine-cell directional scoreboard for multi-horizon entries
  37. 2010Building a Vortex Indicator from high-low distances
  38. 2010Constructing ADX, RSI, and MACD price filters
  39. 2011Constructing a volume zone oscillator with a moving-average and Average Directional Index regime filter
  40. 2011A volume zone oscillator conditioned by an Average Directional Index filter
  41. 2011Candlestick names need volume-price, ADX, and moving-average checks
  42. 2012Clustered average-directional-index traces as a trend-start filter
  43. 2012Average Directional Index cluster filters for trend-start signals
  44. 2012Confirming a trend start or turn with a triple ADX cluster
  45. 2013Constructing a late-entry stack from a signed DMI oscillator
  46. 2013A directional oscillator and its stochastic as a stacked timing filter
  47. 2013ADX cluster lookbacks are a locked specification, not a chart label
  48. 2013Combining moving averages, stochastics, and ADX in a daily scan
  49. 2015Assembling the Average Directional Index from directional movement
  50. 2016How an Average Directional Index filter and a breakout entry form one procedure
  51. 2016Score RSI and stochastic crossings only when ADX confirms the trend
  52. 2018Constructing an ADX filter for intraday breakouts
  53. 2018An ADX volatility gate for prior-day breakouts
  54. 2019Exponential deviation bands with a moving average, RSI and ADX
  55. 2020A normalized-slope trend filter from linear regression
  56. 2020Gating volatility-momentum divergences with a Trend filter
By fieldIndicators and filters682 readingsBy year201281 readings
All 71 readings tagged Average Directional Index
Also on Average Directional Index5 readings
2008Average directional index and directional trend indicator lookbacks as trend-filter parametersDirectional Trend Indicator1986Cycle-aligned directional trend indicatorDirectional Trend Indicator1993Confirming n-bar breakouts with ADX and DX filters1994Constructing a Bollinger band-width trend filter1997An ADX threshold and a moving average as a trend filter