Average Directional Index (ADX)



ADX Indicators Forex

Downloads:


ADX.mq4
Advanced_ADX.mq4

ADX Quick Summary


Trading with ADX indicator involves the following signals:

ADX staying below 20 level — there is no trend or the trend is weak.

ADX moving above 20 level — trend is strong.

ADX passing 40 level — trend is extreme.


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In MT4 you have the ADX settings window, go to "Levels", where you can click "Add" to add new levels, such as 20 & 40 levels, for example.

 

Im using ADX for emini trading on a 5 in chart...what other indicator should I be using to complement and signal confirmation and not as a duplication signal????...please help!!!

thanks for a great site...short and sweet!!!!

 

There are many ways to do it, among simple to start with would be: Stochastic oscillator, or even simply with a Moving average for short term triggers. Also Heiken-ashi candles would be worth attention.

 

Sir,

I am a retaired person and want to do some business from home and also interested to do the forex and recently I came accross your notes and I am very much thankful to you. It is very easy to follow and at the same time you are explaining with detailed answers for some questions. This is wonderful.

Thanking you,

dnrammohan

 

I am following all the people with best wishes . Thank you very much and more ! Danfranko

 

Sir

For Forex trading, what would be a good parameter ADX setting on a 4 hrs time frame chart?

Thanks Goodman

 

I'd usually use 14 or sometimes 20 ADX. But you can also look at 34 period.

 

'A sell signal will be the opposite: -DI would cross +DI downwards'

Are you sure this is correct? It's the same as +DI crossing -DI upwards isn't it?
Should be -DI crosses +DI upwards shouldn't it. -DI is rising, +DI is falling, or am I going crazy?

 

You're right... that should be fixed to "+DI crossing -DI downwards".
Thank you for noticing that.

 

You're doing a good job. I love your explanation. It's wonderful. ADX is a very good indicator

 

thanks,you talked about using another indicator to support adx.which one is the most effective.

 

really itz gr8 and thank u very much.......

 

The formula is wrong. You forgot the true range and you can't have Positive and Negative Directional Movenment at the same time, among other errors. Please check with the autor Welles Wilder in New Concepts in Technical Trading Systems or with the November 2000 issue of the magazine Technical Analysis of Stocks & Commodities.

 

what settings can one use for the ADX in trading short term trades, like the 15min time frame?

 

Compare 14 vs 34 ADX.
20 ADX would as a rule work well on 15 min.

 

Top chart, green line. I am referring to the EURUSD chart, top section.

Is it a Moving Average? How many days?

Thanks

S S Lee

 

It's 20 SMA.

 

This is wrong formula, you could divide by 0 if you use this. Even a child can spot that.

 

Could you help with the correct one, please, if you have?
I only know this formula for ADX.

 

please sir is there any indicator that i can use for the period of 1 min

 

My 2 cents: look what people use for scalping

 

Yes, Moving averages - the simplest, also Parabolic SAR and all other trend indicators, plus some of the custom MT4 indicators. It's not possible to just give you a list of indicators, because almost any indicator can at some point be used on 1 min charts.

 

Thank you very much for the detailed, yet easy to understand explanation.

 

Good Article. Thank You So Much.

 

Like the ADX indicator but there are some numbers that display. When I add 20 and 40 they try to display but when some of the numbers associated with the basic indicator are present the 20 and 40 can become imposible to read. Do you know of a solution or is the source code avaiable (ADX.mq4)??
Thank You SFZ