Thread: T3 ADX- Vertex FX Indicator

T3 ADX is a powerful VertexFX client side VTL indicator based upon market cycles that provides excellent entry and exit signals.
It is based upon the ADX, +DI (PlusDI) and -DI (MinusDI) indicators. This indicator has two components, the GREEN line which is calculated from the +DI (PlusDI) component of the ADX indicator, and the RED line which is calculated from the -DI (MinusDI) component of the ADX indicator.
In the first step, we calculate the ADX, +DI and -DI indicators over the ADX_PERIOD. The GREEN line is calculated by subtracting the current +DI from the previous value of +DI and smoothing it over T3 PERIOD and using the B smoothing constant. The RED line is calculated by subtracting the current -DI from the previous value of -DI and smoothing it over the T3_PERIOD and using the B smoothing constant.
The concept behind the indicator is that +DI component exhibits the bullishness of the market and the -DI component exhibits the bearishness. By smoothing them, the indicator attempts to eliminate the lag.
BUY - Enter BUY trade when the GREEN line closes above the RED line. Do not enter trade if the candle has gap-up opening. Place stop-loss below the nearest swing Low. If the candle has gap-up opening do not enter the trade.
SELL - Enter SELL trade when the GREEN line closes below the RED line. Do not enter trade if the candle has a gap-down opening. Place stop-loss above the nearest swing High. If the candle has a gap-down opening do not enter the trade.