ADXS is a trend indicator, created in 2014 by Stanislav Korotky. The Mean Directional Index, or ADXS Indicator, is an indicator designed to measure the strength and direction of the market trend. The most powerful business strategies, or at least some of them, revolve around market trends, to work for or against you. If you are able to identify when a trend is forming correctly, you will be increasing the odds in your favor considerably. Just as useful as identifying a trend is measuring its strength. There are a variety of indicators that try to achieve this. ADXS is one such tool.
Overview
The ADXS Indicator is used for three purposes:
- Measuring the strength of the trend
- Find the Trend and Range
- As a filter for different trading strategies
The ADX Indicator can be used in many financial markets, such as stock exchange, Forex, CFDs, etc.
Configure ADXS Flag
The value 14 comes by default, and the traditional way of representing the ADXS is to display three lines below the main price chart.
These lines include the following:
- A thick blue line for the ADXS indicator
- A green dotted line for +DI values
- A dotted red line for -DI values
Basically, the ADXS indicator has a range of 0 to 100. Above 25 to suggest a trending market. Below 20 to suggest that there is no trend or that it is weak.
As you can see, these premises leave you in limbo with values between 20 and 25. For this reason, many technical analysts use the 25 as the key level between the existence of trend and not.
How to interpret the ADX indicator to measure trend strength:
-The ADXS directional system can also measure the change in market sentiment by following changes in price range.
-The current maximum is above the previous maximum, the ADXS indicator suggests that the market is more optimistic than before.
-If the current minimum is lower than the previous minimum, the ADXS indicator suggests that the market is now lower than before.
You can enter these levels manually within the properties of the indicator.
Conclusion
The ADX indicator is a real guide to the strength and direction of the trend. It uses the directional components + DI and – DI.
As a reminder, even if + DI, – DI, and ADXS are displayed simultaneously on the MT4 trading platform, the ADXS indicator for MT4 is a delay indicator. This means it does not indicate a trend until it starts, so you can miss good market entries.
The best way to use this ADX technical indicator is to use it as:
- A method to confirm an ongoing trend.
- Complementary tool, together with other analytical measures.
Therefore, whatever your trading style, you can trade a trading strategy with the ADXS flag. There are many similar indicators in the market, we have already analyzed some. We believe that a trend indicator, supplemented by other indicators, is a good option. This indicator does not have many user reviews, but the ones there are positive. If you want to purchase this indicator, you can find it on the MQL market for only 11.95 USD, and you also have a free trial.
This Forex service can be found at the following web address: https://www.mql5.com/en/market/product/5052
