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The Advanced ADX indicator
The traditional ADX indicator, designed by J. Welles Wilder, indicates the strength of the trend. The Advanced ADX also indicates the direction of the trend. It is a great indicator to measure both the strength AND the direction of the trend.
The advantages of the Advanced ADX indicator:
- A precise indicator of the market trend.
- A precise indicator of the strength of the trend.
- It can be applied to every instrument.
- It can be used in any time frame.
- Easy to understand and easy to use.
- The indicator is FREE.
Interpreting this technical analysis indicator is easy. A green histogram indicates that the trend is bullish. A red histogram indicates that the trend is bearish. A high value indicates a strong trend. A low value indicates a weak trend. Traders usually use these values:
- 0-25: No trend or weak trend
- 26-50: Strong trend
- 51-75: Very strong trend
- 76-100: Extremely strong trend
The Advanced ADX indicator can be used as a signal or as a signals filter in the NanoTrader platform.
This example shows the Advanced ADX indicator in a 60-minute chart, calculated over a 14-day period. The trend is bearish (red histogram) and weak (22,16).
This example shows the DAX market index in a 60-minute chart. The Advanced ADX indicator informs the trader that the trend currently bearish (red histogram) and weak (22,68) is.
This example shows a trend, which is bullish (green histogram) and strong (38,98). The traded added the DMI lines (DI+ / DI-), which are used to calculate the ADX.
Open the chart of the instrument you wish to trade.
In the WHS Proposals folder, select the Advanced ADX indicator.