OPEN-SOURCE SCRIPT
ADX Z-Score Oscillator
Title: ADX Z-Score Oscillator
Description:
The ADX Z-Score Oscillator is a normalized version of the traditional Average Directional Index (ADX), designed to oscillate between fixed bounds for easier interpretation of trend strength. Instead of plotting the raw ADX line, this indicator calculates the Z-Score of the ADX relative to its recent average and standard deviation, allowing for consistent comparison over time and across different assets.
The Z-Score oscillates between fixed horizontal levels of +2 and -2, highlighting extreme values.
The orange line represents the current Z-Score of the ADX.
Horizontal reference lines at +2 (red), 0 (gray), and -2 (green) help define overbought/oversold or strong/weak trend zones.
A dynamic table on the chart shows the current Z-Score with color coding to indicate trend strength:
🔴 Z > 1.5 → Very strong trend
🟠 Z > 0.5 → Moderate trend
🔵 Z < -0.5 → Weakening or reversing trend
🟢 Z < -1.5 → Very weak trend or potential reversal zone
This transformation of the ADX into a bounded oscillator helps traders easily assess trend strength and changes in momentum without the ambiguity of varying ADX scale levels.
Description:
The ADX Z-Score Oscillator is a normalized version of the traditional Average Directional Index (ADX), designed to oscillate between fixed bounds for easier interpretation of trend strength. Instead of plotting the raw ADX line, this indicator calculates the Z-Score of the ADX relative to its recent average and standard deviation, allowing for consistent comparison over time and across different assets.
The Z-Score oscillates between fixed horizontal levels of +2 and -2, highlighting extreme values.
The orange line represents the current Z-Score of the ADX.
Horizontal reference lines at +2 (red), 0 (gray), and -2 (green) help define overbought/oversold or strong/weak trend zones.
A dynamic table on the chart shows the current Z-Score with color coding to indicate trend strength:
🔴 Z > 1.5 → Very strong trend
🟠 Z > 0.5 → Moderate trend
🔵 Z < -0.5 → Weakening or reversing trend
🟢 Z < -1.5 → Very weak trend or potential reversal zone
This transformation of the ADX into a bounded oscillator helps traders easily assess trend strength and changes in momentum without the ambiguity of varying ADX scale levels.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.