How to Add ADX Indicator on MetaTrader 4 Charts - Adding MT4 ADX Forex Chart Indicator
Step 1: Open Navigator Window Panel on Forex Trading Platform
Open Navigator window as shown & illustrated below: Go to "View" menu (click on it), then select "Navigator" window (click), or From Standard Tool Bar click the "Navigator" button or press keyboard short cut keys "Ctrl+N"
On Navigator window, select 'Technical Indicators', (DoubleClick)
How to Add ADX Indicator on MetaTrader 4 - MT4 ADX Technical Indicator
Step 2: Expand the Indicators Menu on the Navigator - Adding ADX MT4 Chart Indicator
Expand the menu by clicking the expand button marker (+) or double click the "indicators" menu, after this the button will appear as (-) and will now display a list as shown below - select the ADX forex chart indicator from this list of forex indicators so as to add the ADX indicator on the forex chart.
How to Add ADX Indicator - From the Above window you can then place ADX indicator that you want on the Forex chart
How to Add Custom ADX Indicator to MT4
If the technical indicator you want to add is a custom indicator - for example if the ADX technical indicator you want to add is a custom indicator you will need to first add this custom ADX indicator on the MetaTrader 4 platform & then compile custom ADX indicator so that the newly added ADX custom indicator pops up on the list of custom indicators in MetaTrader 4 software.
To learn how to install ADX indicators on MT4, how to add ADX indicator window to MT4 and how to add ADX custom indicator in MT4 - How to add a custom ADX indicator on MetaTrader 4.
About ADX Technical Indicator Described
ADX Technical Analysis & ADX Signals
Developed by J. Welles Wilder
This a momentum indicator used to determine the strength of a price trend: it is derived from the DMI - Directional Movement Index which has 2 lines.
+DI - Positive Directional Movement Index
–DI - Negative Directional Movement Index
ADX is calculated by subtracting these 2 values & applying a smoothing function.
The ADX is not a directional technical indicator but a measure of the strength of the trend which has a scale of Zero to 100.
Higher the technical indicator value the stronger the market trend.
A value of below 20 indicates that the market is not trending but heading in a range.
A value of above 20 confirms a buy or sell signal and indicates a new trend is emerging.
Values above 30 indicates a strong trending market.
When ADX indicator turns down from above 30, it signifies that the current trend is losing momentum.
ADX combined with DMI - Directional Movement Index Indicator
Since the ADX alone is a directionless indicator it's combined with the DMI index to figure out the direction of the currency pair.
DMI
ADX and DMI Index
When the ADX is combined with DMI index a trader can determine the direction of the trend and then use the this indicator to determine the momentum of the prevailing trend direction.
FX Technical Analysis & Generating Signals
Buy Trading Signal
A buy trading signal is generated when +DI is above –DI, & the ADX technical indicator is above 20
The Exit signal is generated when indicator turns down from above 30.
Buy Forex Signal
Sell Trading Signal
A short signal is generated when –DI is above +DI, & the ADX technical indicator is above 20
The Exit signal is generated when indicator turns down from above 30.
Sell Forex Signal
