Advanced ADX Indicator MT4
Platform: MT4 Type: Trend Last update: February 22, 2025The Advanced ADX Indicator for MT4 is an improved iteration of the average directional index. This tool has the ability to not only spot trends but also gauge their strength. In fact, it provides better and more detailed readings then a regular version. The updated features gives better performance and allow to maximize profitability.
Example chart:
Advanced adx vs regular adx
The traditional adx measures trend strength using the D+ (positive directional) and D- (negative directional) lines, with values above 25 indicating a strong trend. However, interpreting these lines can be challenging, especially for beginners.
The advanced adx indicator simplifies this by replacing oscillating lines with an intuitive color-coded histogram.
How to trade with the advanced adx mt4 indicator?
The histogram oscillates between values of 0 to 100, with distinct colors representing bullish and bearish trends:
- Green bars – indicate a strengthening uptrend.
- Red bars – signify a strengthening downtrend.
The moment the histogram changes color, traders receive a clear signal to enter or exit a position.
When it comes to sensitivity of readings, there is adx period with default value of 13. You customize it for your preferences. Higher values make the indicator to provide smoother signals and lower values give the opposite.
Explaining an example trade
Let’s have a look at that example trade. As a rule of thumb, one should sell on red adx bars and buy on green adx bars. In the chart above, there is majority of red readings which means a dominant trend is bearish. During that, price made an upward pullback and then continued a downfall.
You can see the exact suggested entry and how it resulted in a very profitable trade.
Conclusion
While, the advanced adx indicator for metatrader 4 gives reliable signals on its own, it’s a good idea to use it in a combination with other technical analysis indicators. One can easily backtest the results and – importantly – it’s a non repainting indicator.
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