Regression ADX LinReg Kernel RBF Strength Direction

The Regression ADX is an advanced momentum and regime-detection indicator that re-engineers the traditional ADX/DMI framework using regression-smoothed price data instead of raw candles.

By applying Linear Regression or Gaussian Kernel (RBF) regression to price before calculating ADX, this indicator significantly reduces noise while preserving true directional control and trend strength.

The result is a cleaner, more predictable read on market momentum and direction, especially in choppy or algorithm-driven environments.

What Makes This Different

Traditional ADX reacts to raw price fluctuations, often producing false momentum signals in sideways markets.
This version:

Smooths High / Low / Close using regression

Computes +DI / −DI on the smoothed structure

Measures true expansion vs compression, not noise

Separates directional control from trend strength

Core Components

ADX (Strength): Measures trend expansion regardless of direction

+DI / −DI (Direction): Identifies bullish vs bearish control

Direction Bias Histogram: (+DI − −DI) for fast directional clarity

Regression Engine Selector:

Linear Regression – faster, responsive

Kernel RBF Regression – smoother, more stable regime detection

How to Read It

ADX Rising → Momentum expanding (conditions improving)

ADX Falling → Compression / chop risk

+DI above −DI → Bullish directional control

−DI above +DI → Bearish directional control

Bias Histogram above zero → Bullish pressure

Bias Histogram below zero → Bearish pressure

Best Practices

✔ Use as a trade filter, not a signal generator
✔ Trade in the direction of DI dominance
✔ Prioritize setups when ADX is rising above 20–25
✔ Avoid entries during falling ADX or neutral bias
✔ Excellent for futures, options, and high-frequency markets

Who This Is For

Momentum and trend traders

Quant-style system builders

Traders looking to avoid chop

Anyone who uses ADX but wants a cleaner, smarter version

What This Indicator Is Not

✖ Not a buy/sell system
✖ Not a moving average crossover
✖ Not designed for beginners

Summary

Regression ADX transforms a classic indicator into a modern regime engine by combining directional movement theory with regression-based smoothing.
If you want to know when momentum is real, when direction is controlled, and when it’s worth trading, this indicator provides that edge.