The Free ADX Forex Indicator download here is an indicator of directional price movement. Its functions – display pronounced tendency to demonstrate its strength. This oscillator is accompanied by a price chart, ADX indicator value ranges from 0 to 100%. ADX indicator value and the potential is directly proportional to the current trend: the growing importance of the oscillator increases the potential movement (trend strength). And vice versa – with a decrease in the value of ADX increases the probability of changing the trend.
Our ADX indicator is advanced improved version of a Standard indicators of the trading terminal Metatrader 4 and Metatrader 5
ADX indicator has three components. This line, which displays the amount of bullish and bearish positions:
1) + DI. This line is called a positive indicator.
2)-DI. It is a negative indicator.
3) ADX. This line is also called the average two-way, is the arithmetic average of the two previous indicator (+ DI and-DI).
Hence the conclusion – the more different values of the positive (+ DI) and negative (-DI) indicators, the higher the value of the oscillator ADX.
What happens when the market rises, bears or bulls? The distance between the lines of DI increases, which clearly displayed in the increasing value of the indicator and ADX. That is, if the chart oscillator ADX Average Directional growing trend suggests the beginning. And vice versa – with decreasing values ADX trend strength goes down.
Thus, we see that the (oscillator) ADX does not show the trend, but only the intensity (strength).
Features indicator ADX:
● If the value of the line + DI is greater than the line – DI (visual + DI is higher – DI) – the trend is bullish (rising).
● If the value of the line + DI is less than the line – DI (visual + DI is lower – DI) – the trend is bearish (falling).
The third component of the ADX has fluctuation range 0-50%. If the ADX line ranges from 0 to 20% – oscillator provides a signal that the trend is marked on the chart is missing. If the ADX line rises above 20%, we can assume the formation of a trend and look for an entry point into the market.
If the ADX line moves down after reached 50% – a signal that the trend will soon be over, suggesting the need to close open transactions.
Use the (oscillator) ADX to determine the strength of the trend, and its orientation was determined by the moving average, the price channel orientation, or any other convenient way.
ADX Forex indicator free instant download