ADX Smoothed Indicator: The Raw Reading and a Calmer One

Written by Dominic Walsh · Published · Last updated

The adx smoothed indicator puts two versions of the same reading side by side. ADX is the raw strength value over AdxPeriod bars. ADX Smoothed averages it again over SmoothPeriod, which strips out the small wobbles that make the raw line hard to read near a threshold.

This build ships as a compiled .ex4 for MT4 and .ex5 for MT5; the screenshots below come from EURUSD H1.

Platforms MT4 (.ex4) + MT5 (.ex5)
Chart window Separate window (levels 25)
Plots 2: ADX, ADX Smoothed
Alerts popup, push notification, email, sound
Inputs 9

On the chart: plots and colours

ADX is the raw strength reading, unchanged from the standard calculation.

ADX Smoothed is that same series averaged over SmoothPeriod bars.

A level crosses the pane at 25, matching the TrendLevel default.

  • ADX: line, dim gray, width 1
  • ADX Smoothed: line, dodger blue, width 3
EURUSD H1 pane: the adx smoothed indicator with ADX Smoothed crossing above the 25 level.
EURUSD H1 pane: the adx smoothed indicator with ADX Smoothed crossing above the 25 level.

What the build works out

The raw reading

One call returns the main strength value at the AdxPeriod length. Nothing about this half differs from a standard build.

That value measures how much of recent movement went one way, without saying which way. It rises in a strong fall exactly as it does in a strong rise.

Averaging it again

The second line is a simple average of the raw values across SmoothPeriod bars. It reads the same series rather than recalculating from price.

Smoothing an already smoothed reading adds lag, which is the trade. What you get back is a line that crosses a threshold once rather than three times.

What the alert reads

The alert block looks at the directional components at the same AdxPeriod length rather than at either plotted line.

So the two lines describe strength while the alert reports direction, which is worth knowing before you rely on one to explain the other.

How to take a reading

The gap between the two lines shows how much the raw reading is wobbling.

The smoothed line crossing TrendLevel is a steadier event than the raw one crossing it.

Both lines measure strength alone, so neither tells you which side is winning.

A raw line above the smoothed one means strength is building rather than fading.

Alert channels in this build: popup, push notification, email and sound, one message per closed bar.

Alerts cover popup, push, email and sound. A bar time check keeps it to one alert per closed bar.

Every Adx Smoothed Indicator input

Core settings

Setting What it does Default
AdxPeriod AdxPeriod is the smoothing length behind the raw reading. It defaults to 14. 14
SmoothPeriod SmoothPeriod averages that reading a second time, 5 by default. Raising it calms the line further and delays every threshold crossing. 5
TrendLevel TrendLevel is the reference drawn across the pane, 25 by default. 25

Alert settings

Setting What it does Default
EnableAlerts (see inputs panel) on
EnablePopup (see inputs panel) on
EnablePushNotify EnablePushNotify sends each alert to the MT4 mobile app. It defaults to false. off
EnableEmail (see inputs panel) off
EnableSound (see inputs panel) off
SoundFile (see inputs panel) alert.wav
Inputs panel for the adx smoothed indicator showing AdxPeriod, SmoothPeriod and TrendLevel.
Inputs panel for the adx smoothed indicator showing AdxPeriod, SmoothPeriod and TrendLevel.

Where it earns its keep

The screenshot uses EURUSD H1. A double smoothed strength reading suits charts where you care whether a threshold crossing is real, which usually means H1 and above. On M5 the raw line crosses TrendLevel constantly and the smoothed one becomes the only usable half.

What it misses

Smoothing a lagging reading makes it lag more. The smoothed line confirms a move well after it started.

Neither line gives direction, so a high reading tells you nothing about which way to trade.

The alert reads the directional components rather than either plotted line, so what fires and what you see are not the same thing.

Both lines share AdxPeriod, so you cannot measure strength over one window and smooth over a different one.

Copy the compiled Adx Smoothed Indicator file into your MQL4/Indicators folder, and the MT5 build into MQL5/Indicators, then restart the terminal and drag it onto a chart. The step-by-step guide with screenshots is at how to install MT4 and MT5 indicators.

Background reading on the method behind the Adx Smoothed Indicator: Bull–bear line on Wikipedia, Williamsr at Investopedia.

Download the Adx Smoothed Indicator for MT4 and MT5

The zip holds the compiled Adx Smoothed Indicator build for MT4 and MT5, plus a short README. Compiled files only, no source. Enter your email below and the download link arrives in your inbox.

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FAQ

What does SmoothPeriod 5 change about the ADX line?

Nothing, since the raw line stays exactly as the standard calculation produces it. SmoothPeriod builds the second line by averaging those raw values over five bars. That gives a calmer curve that crosses TrendLevel once where the raw one might cross three times.

Can a TrendLevel crossing tell me which way to trade?

No. Both lines measure how much of recent movement went one way, never which way. A crossing at 25 says a move has conviction and stops there. Which side is winning has to come from the directional components or from price.

Why does the alert not use the ADX Smoothed line?

The alert block reads the directional components at the AdxPeriod length instead. So the pane shows strength while the messages report direction. It is worth knowing the two are separate, because a fired alert does not correspond to anything crossing on the chart.

Should TrendLevel move away from 25?

That depends on the instrument. Twenty five is the conventional floor for calling a move a trend. On a market that habitually reads high, raising it keeps the level meaningful. On a quiet one, lowering it stops the pane sitting under the line all day.

Are results guaranteed?

No. Trading involves risk. Results are not guaranteed; past performance is not indicative of future results. Use the Adx Smoothed Indicator as one input. Always backtest before trading live.

Category: this is part of our Signal and Forecast collection. Thus, browse more Signal and Forecast for MetaTrader, or explore every MT4 indicator and MT5 indicator on the site.

External references

Dominic Walsh - Forex trader and MT4/MT5 developer

About the author

Written by Dominic Walsh, a Forex trader and MT4/MT5 indicator, Expert Advisor and script developer. Every tool on forexmt4systems.com is tested on live charts before release and ships with ready-to-use compiled MT4 (.ex4) and MT5 (.ex5) files. Learn more about the trader and developer behind this site.

How we build, test and correct every tool: Editorial & Testing Policy. Trading carries risk; see the disclaimer.

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