Trend Ignition
A simple yet extremely powerful indicator for detecting price momentum directly on your chart. It plots color-coded flag shapes below bars whenever ADX crosses key thresholds — giving you instant visual confirmation that a trend is developing, strengthening, or approaching exhaustion.
When ADX crosses 25 and is increasing, that is an early warning to watch the move closely. At 35, you have a strong confirmed trend. At 45–55, momentum is unusually strong. At 65, the trend may be nearing exhaustion.
Important: ADX does not indicate direction — only trend strength. Always combine with directional tools (DI+/DI-, price structure, or other indicators) before acting.
ADX Threshold Guide
| Flag | ADX Level | What It Means | Action |
|---|---|---|---|
| TREND>25 | ADX crosses 25 | Trend is emerging from a ranging/weak market | Watch closely — start preparing |
| TREND>35 | ADX crosses 35 | Strong confirmed trend is underway | Favorable for trend-following entries |
| TREND>45 | ADX crosses 45 | Unusually strong momentum | Trail stops tighter, watch for extension |
| TREND>55 | ADX crosses 55 | Extreme trend strength | Be cautious — reversal risk increases |
| TREND>65 | ADX crosses 65 | Potential trend exhaustion zone | Tighten stops, consider scaling out |
Pine Script Code
//@version=5
indicator("Madstocks-ADX Overlay", overlay=true)
// ──────────────────────────────────────────
// len = input.int(17, ...)
// [ldi, odi, adx] = ta.dmi(len, lensig)
// trending = ta.crossover(adx, 25)
// plotshape(trending, location=...
// text="TREND>25", color=color.lime)
// trendingStronger = ta.crossover(adx, 35)
// trendingStrong = ta.crossover(adx, 45)
// trendingStrongest = ta.crossover(adx, 55)
Disclaimer & Risk Warning:
This indicator is provided for educational and informational purposes only.
It does not constitute financial advice, investment recommendations, or an offer to buy or sell any security.
Past performance of any indicator or strategy does not guarantee future results.
All trading involves substantial risk, including the possible loss of more than your initial investment.
ADX measures trend strength only — it does not predict direction or magnitude of price moves.
Always conduct your own due diligence and consult a qualified financial advisor before making any trading decisions.
MadStocks is not responsible for any losses incurred from the use of this or any other indicator.