ADX in EasyLanguage — TradeStation & MultiCharts

EasyLanguage ships the whole directional system as reserved words, which is a relief given how many steps the ADX has (see the explainer). Here’s the study and an ADX-filtered strategy.

What you’ll need

• TradeStation or MultiCharts
• The EasyLanguage / PowerLanguage Editor, new Indicator

The source

{ AlgoGen ADX — TradeStation / MultiCharts }
inputs:
    Length( 14 ),
    TrendLevel( 25 );

variables:
    ADXval( 0 ), PlusDI( 0 ), MinusDI( 0 );

ADXval  = ADX( Length );
PlusDI  = DMIPlus( Length );
MinusDI = DMIMinus( Length );

Plot1( ADXval,  "ADX" );
Plot2( PlusDI,  "+DI" );
Plot3( MinusDI, "−DI" );
Plot4( TrendLevel, "Trend" );

ADX( Length ) gives the trend-strength line, and DMIPlus/DMIMinus give the directional lines — the three series in the output chart. (Some EasyLanguage versions also expose DMI and ADXR.)

An ADX-filtered strategy

The most valuable use is filtering, not raw DI crosses:

{ AlgoGen ADX Trend Filter — Strategy }
inputs: Length( 14 ), TrendLevel( 25 );
variables: ADXval( 0 ), PlusDI( 0 ), MinusDI( 0 );

ADXval  = ADX( Length );
PlusDI  = DMIPlus( Length );
MinusDI = DMIMinus( Length );

{ Only act on a DI cross when a trend actually exists }
if ADXval > TrendLevel then begin
    if PlusDI crosses over MinusDI then Buy next bar at market;
    if MinusDI crosses over PlusDI then SellShort next bar at market;
end;

The Strategy Performance Report will show whether gating DI crosses on ADX > TrendLevel beats trading every cross.

ADXR and RadarScreen

For ranking a watchlist by trend strength, ADXR( Length ) — Wilder’s smoothed rating — makes a steadier column than raw ADX in RadarScreen or the scanner:

Plot5( ADXR( Length ), "ADXR" );

Sort a RadarScreen by ADXR to surface the markets with the most established trends, then apply your directional logic only to those — a direct nod to how Wilder intended the Directional Movement System to be used for market selection, not just timing.

Gotchas

• Reserved-word availability. ADX, DMIPlus, and DMIMinus are standard, but older or third-party EasyLanguage dialects vary — check your platform’s function list if one won’t verify.
• Lag. ADX is double-smoothed and late; use it to confirm the environment, not to time entries precisely.
• Direction vs strength. ADX is strength only; you must read DMIPlus versus DMIMinus to know which way.

Same indicator elsewhere: Python, MQL5, Pine Script, NinjaScript. Then backtest an ADX filter in AlgoGen.

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This post is educational, not financial advice. Indicators describe the past; they don’t predict the future. Backtest anything before you risk real money on it.