ADX with Shaded Zone

The ADX with Shaded Zone indicator is a momentum-based tool that visualizes trend strength using the Average Directional Index (ADX) along with the +DI and -DI lines. This indicator enhances the traditional ADX setup by adding a shaded zone between ADX levels 20 and 25, helping traders easily identify the transition area between non-trending and trending market conditions.

It plots:

+DI (Green): Positive Directional Indicator

−DI (Red): Negative Directional Indicator

ADX (Blue): Measures the strength of the trend

Shaded Zone: Highlights the indecisive range where ADX is below 25 (gray background between levels 20 and 25)

⚙️ How to Use:
✅ Trend Identification:
ADX < 20: Weak or no trend. Avoid trend-following strategies.

ADX 20–25 (Shaded Zone): Transition zone. Potential trend forming — stay cautious.

ADX > 25: Stronger trend. Favor trend-following strategies.

✅ Direction Confirmation:
If +DI > -DI and ADX > 25 → Uptrend confirmation.

If -DI > +DI and ADX > 25 → Downtrend confirmation.

Crossovers between +DI and -DI can be used as early signals.

✅ Shaded Zone Use:
The gray shaded area helps visually filter out low-trend strength conditions.

Useful for trend traders to wait before entering until ADX breaks above 25.