Staged Average Directional Index construction with Relative Strength Index confirmation and stop alerts

Read construction as a permission stack

The archive workflow builds Average Directional Index in stages and will not compute it until a full lookback of directional-index values exists. Editorial interpretation: treat each completed lookback as a permission that must be proven before the next named gate is allowed to speak.

Stop-proximity alerts and Relative Strength Index confirmation appear only after those handoffs. Editorial interpretation: they earn a place as inspectable gates, not as a substitute for the unfinished series.

Plus and minus directional lines computed over a stated lookback are a first-pass consideration, not a complete entry rule. A 14-period directional-line cross is only a first consideration. Average Directional Index must stand in a defined relationship to those lines or the event is ignored.

How the workbook fills the series

Fourteen one-period true-range and directional-movement rows are required before the first 14-period totals can be formed. That first 14-period row uses a different calculation than later rows.

Fourteen directional-index values must exist before Average Directional Index can be computed. Average Directional Index is the trend-presence series formed from that directional index after a stated lookback of directional-index values. It is then compared with the plus and minus directional lines.

A loop counter gates the workbook. Below 13 it builds only one-period sums. After 13 a second stage fills five columns ending in the directional index. At data row 26 a third stage begins Average Directional Index and treats the first Average Directional Index value differently from later ones.

Stay-in, stop, and confirmation gates

An extreme-point rule is a stay-in price test that can cancel an exit or reversal suggested by a later directional-line cross. If that price is not reached, the position is left unchanged.

A stop-loss here is a pre-set price or distance that bounds exit risk. Construction includes a proximity alert before that level is reached.

Relative Strength Index is a bounded sequential-strength oscillator used here as a confirmation overlay on a directional-line event. A Relative Strength Index of a stated lookback that turns up through a stated threshold can be messaged as confirmation of a directional-line cross.

A message module for hidden criteria

Criteria that cannot be shown on a chart are surfaced with a message module so the operator can see which construction stage or decision gate has been reached.

The same message layer can report that Average Directional Index is rising above both directional lines, so new entries are withheld, or that price is within a stated distance of a stop. It can also message Relative Strength Index confirmation of a directional-line cross.