ADX Divergence indicator for Thinkorswim TOS

This product is part of the:ADX Divergence Indicator all-in-one package for Thinkorswim

The Average Directional Index (ADX) is calculated as a moving average of the directional index. ADX is used for trend strength evaluation.
High ADX values might indicate that the market is trending, while low values are considered to signify weak trend or non-trending conditions.

Divergence indicator gives possible reversal signals when there are discrepancies between ADX and price movement.

Divergence emerges when price and oscillator indicator move in different directions. 

For instance, an uptrend Negative Divergence occurs when price reaches a higher high, but the indicator fails to follow.
In a downtrend, positive divergence occurs when price reaches a lower low, yet the indicator does not reach a lower low.

For the most part, oscillator indicators and price trailing each other and move in the same direction.
However, when they start to drift apart, the current trade may consolidate or exhibit a reverse pattern. 

Parameters:

• You can change all ADX (Relative Strength Index) parameters:
  • ADX length: The number of bars used to calculate the ADX.
  • average type: The type of moving average to be used in calculations: simple, exponential, weighted, Wilder's, or Hull.
• Length 1&2: Define the range of bars which are used to calculate the current High/Low and previous High/Low.
• Percent: The difference current High/Low and previous High/Low.
   
• ADX_Percent: The difference between current ADX and the ADX value from previous High/Low.
• Alert: provide both sound and message alert whenever a divergence is found. You can turn it on or off.
• mode: Choose "Upper" to only plot signal arrows on price chart.
  Choose "lower" it will plot as a Stochastic  indicator with divergence signals.

 
Please note: in order to plot this indicator on both price chart and lower chart, you need to load it in two places. And set Stochastic _mode to "Upper" in Price chart and Stoch _mode to "lower" in Lower chart. As shown in the following picture.
If you want the same signals on both charts, all parameters have to be consistent on both sides.


This indicator works in any time period and applicable for all securities(Stocks, Futures, Forex, Options,ETF, etc.).
When you use this indicator in minute chart, it's better to set "percent" less than 1, otherwise, lots of signals will be filtered.

If you want to add any feature to this indicator, please send us a Customization request.

How to use:
The purpose of divergence indicator is to point when price  trend are moving into  opposite direction.