Adding MetaTrader 4 ADX Indices Technical Chart Indicator
Step 1: Open the Indices Trading Platform Navigator Window
Open the Navigator window as shown below; Go to “View” menu (click), then select the “Navigator” window (click), or From Standard Toolbar click the “Navigator” button or press short cut keyboard keys “Ctrl+N”
On the Navigator window, select “Indicators”, (Double Click)
How to Add ADX Stock Indexes Indicator on MT4 - MetaTrader 4 ADX Indices Indicator
Adding ADX MetaTrader 4 Indices Technical 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 stock indices chart indicator from this list of stock indices indicators so as to add the ADX stock indexes technical indicator on the stock indexes trading chart.
From the Above window you can then place ADX indicator that you want on the Indices Trading chart
How to Put Custom ADX Stock Indexes Indicator on MetaTrader 4 and How to Install ADX Stock Indexes Indicator MetaTrader 4
If the stock indices indicator you want to add is a custom indicator - for example if the ADX indicator you want to add is a custom indicator you will need to first add this custom ADX indicator on the MT4 stock indexes trading platform and the compile the custom ADX indicator so that the newly added ADX custom indicator appear on the list of custom indicators on the MetaTrader 4 stock indexes trading platform.
To learn how to install ADX indicators on MetaTrader 4, how to add ADX indicator window to MetaTrader 4 and how to add ADX custom indicator on MT4 stock indexes trading platform - How to add a custom ADX indices trading Indicator on MT4.
About ADX Indices Indicator Tutorial
ADX Indices Technical Analysis and ADX Indices Trading Signals
Developed by J. Welles Wilder
This a momentum indicator used to determine the strength of a indices price trend; it is derived from the DMI - Directional Movement Index which has two lines.
+DI - Positive Directional Movement Index
–DI - Negative Directional Movement Index
ADX is calculated by subtracting these two values and applying a smoothing function.
The ADX is not a directional indicator but a measure of the strength of the indices trend which has a scale of Zero to 100.
The higher the indicator value the stronger the trend.
A value of below 20 indicates that the stock indexes trading market is not trending but moving in a range.
A value of above 20 confirms a buy or sell stock indices signal and indicates a new indices trend is emerging.
Values above 30 signifies a strong trending market.
When ADX turns down from above 30, it signifies that the current indices trend is losing momentum.
ADX combined with DMI
Since the ADX alone is a directionless indicator it is combined with the DMI index to determine the direction of indices.
DMI
ADX and DMI Index
When the ADX is combined with DMI index a indices trader can determine the direction of the indices trend and then use the this indicator to determine the momentum of the prevailing indices trend direction.
Indices Technical Analysis and Generating Indices Trading Signals
Buy Indices Trading Signal
A buy stock indices signal is generated when the +DI is above –DI, and the ADX is above 20
The Exit signal is generated when the indicator turns down from above 30.
Buy Indices Trading Signal
Sell Indices Trading Signal
A short signal is generated when the –DI is above +DI, and the ADX is above 20
The Exit signal is generated when the indicator turns down from above 30.
Sell Indices Trading Signal
