ADX Trend Strength Indicator in Pine Script v6: Build a Compile-Tested DMI Filter
Every trader has experienced the frustration of entering what looks like a clean breakout, only to watch price immediately reverse into a choppy, sideways grind. The Average Directional Index (ADX) was designed by J. Welles Wilder specifically to solve this problem — not to tell you which direction the market is moving, but how strongly it is moving at all. In this guide, we will build a complete, compile-tested ADX indicator in Pine Script v6, dissect the mathematics behind every calculation step, and show you exactly how to use ADX as a regime filter to avoid low-conviction trades. The Core Problem: Trend vs. Noise Most directional indicators — moving averages, MACD, RSI — assume the market is trending. When it is not, they generate a relentless stream of false signals. ADX quantifies trend strength on a scale from 0 to 100, independent of direction. A rising ADX means the market is developing a trend (bullish...