ADX Trend Indicator MT4

ADX Trend Indicator for MT4

The ADX Trend Indicator for MT4 is a forex price channel based on the Average Directional Index and it’s available to free download. Its bands work as dynamic overbought and oversold levels delivering potential market entry points. What’s more, its slope comes in handy in determining the trend direction.

Technical analysis is pretty easy with that forex indicator. Let’s take a closer look at it and bring some practical trading examples.

Introducing the ADX Trend Indicator

MT4 Indicator Overview

The download link of the ADX Trend MT4 indicator is placed at the bottom of this post. Once you’re done, your trading chart should look similar to the example below.

ADX Trend Indicator Example Chart

It’s a fact that the price oscillates up and down as market participants react to overbought and oversold price states, therefore smart traders would want to capture these reversals by identifying extreme price levels which essentially are market turning points.

The ADX Trend is a channel type of forex indicator working in a similar manner to the Bollinger Bands or Keltner Channel. That gauge draws a smoothened channel-like structure that envelopes the candlesticks. Its upper band is color green, while its lower band is color red. Most of the time, the price doesn’t touch these bands, but when it does, it is an indication of reaching an extreme level, thus it is a trade-triggering signal.

ADX Trend Indicator Settings

There are a few variables you can customize, including the “Swing Count”, “Range Period”, “Price”, “Speed”, “Deviation”, “Smooth Length”, and “Smooth Phase” in order to adjust the sensitivity, smoothness, and width of the ADX Trend Indicator.

ADX Trend Indicator Settings

How To Trade With The ADX Trend Indicator?

Generally speaking, the signal trigger is based on the price reaching the extreme zones and expecting it to return to the mean. Let’s deep dive into how to exactly use that forex indicator in a few simple steps.

ADX Trend: Buy Signal

  • Price hits the lower lower band
  • Triggering candle forms a rejection pattern
  • Open long trade when the above conditions are met
  • Set stop loss a few pips below the most recent market’s low point
  • Take profit whenever the indicator touches the opposite band or close it after achieving a satisfying risk-to-reward ratio

ADX Trend Indicator Buy Signal

ADX Trend: Sell Signal

  • Price hits the upper lower band
  • Triggering candle forms a rejection pattern
  • Open short trade when the above conditions are met
  • Set stop loss a few pips above the most recent market’s high point
  • Take profit whenever the indicator touches the opposite band or close it after achieving a satisfying risk-to-reward ratio

ADX Trend Indicator Sell Signal

How to set up the ADX Trend indicator in MetaTrader (MT4)?

Installation Guide

Download the ADX Trend.rar archive at the bottom of this post, unpack it, then copy and paste the ADX Trend.ex4 or ADX Trend.mq4 indicator files into the MQL4 folder of the Metatrader 4 trading platform.

You can gain access to this folder by clicking the top menu options, which goes as follows:

File > Open Data Folder > MQL4 > Indicators (paste here).

Now go to the left side of your MT4 terminal. In the Navigator find the gauge name, right-click it and select Attach to the chart.

Conclusion

We find ADX Trend Indicator as one of the best forex indicators of its kind. Its signals are quite rare but very reliable. By default, its formula uses a standard deviation of 1.8 with a 5-day range count period, making it a great fit for short-term and intraday technical analysis purposes. To increase the success rate even more, one should be familiar with candlestick patterns, especially reversal patterns like Pin Bars. It can be also a great foundation for developing your own profitable trading strategy.

Download Free ADX Trend MT4 Indicator

To download the ADX Trend Indicator for Metatrader 4 (MT4) for free just click the button below:

ADX Trend Indicator Free Download

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