average directional movement index (adx)
Info
The average directional movement index (adx) is a Indicator for MetaTrader 5 that the average directional movement index (adx) is a technical indicator that assists in identifying market trends. it was introduced and comprehensively explained by welles wilder in his publication, "new concepts in technical trading systems".
Usage
This tool is typically used for enhancing chart analysis and decision making.
Platform
This Indicator works exclusively on MetaTrader 5 (both build 600+ and newer versions).
Setup
Place the downloaded file in MQL5/Indicators folder via File ? Open Data Folder in MetaTrader 5.
How to Install and Use average directional movement index (adx)
1. Installation: Place your file in the MQL/Indicators folder via "Open Data Folder" and restart your terminal.
2. Loading: Find the indicator in the Navigator, drag it onto your chart, and configure the input parameters in the popup window.
3. Customization: Press Ctrl+I to open the indicator list, select your tool, and click "Properties" to change colors, levels, or visual styles.
4. Updating: Replace the old file in the Indicators folder with the new version and restart the platform to apply changes.
Frequently Asked Questions
Q: Why is my indicator not showing? A: Verify the file is in the MQL/Indicators folder, or try right-clicking the "Indicators" tree in the Navigator and clicking "Refresh."
Q: Do custom indicators slow down the platform? A: Too many complex indicators can impact performance; remove unused ones via the "Indicator List" (Ctrl+I).
Q: Can I use MT4 indicators on MT5? A: No, MQL4 and MQL5 are distinct languages; ensure the indicator is compiled specifically for your platform version.
What this tool does
the average directional movement index (adx) is a technical indicator that assists in identifying market trends.
Typical Use Case
This Indicator excels in automated trading and technical analysis on MetaTrader 5.
Compatible Platform & Setup
This Indicator works on MetaTrader 5. Place the file in the MQL5/Indicators folder and restart the terminal.
Description & Settings
Related: multi-timeframe moving average indicator (v03) - another powerful indicator for MetaTrader 5 traders.
the average directional movement index (adx) is a technical indicator that assists in identifying market trends. it was introduced and comprehensively explained by welles wilder in his publication, "new concepts in technical trading systems".Also recommended: universal moving average indicator for mt5 - similar indicator with strong performance on MetaTrader 5.
the fundamental trading approach based on the directional movement system involves comparing two directional indicators: the 14-period +di and the 14-period -di. this comparison can be achieved by overlaying their charts or by subtracting +di from -di. wilder suggests buying when +di crosses above -di and selling when -di crosses above +di.
in addition to these basic trading rules, wilder proposed the extreme point rule to minimize false signals and reduce the number of trades. according to this rule, an "extreme point" occurs when +di and -di intersect. if +di rises above -di, this point represents the maximum price on the day of the crossover, and if +di falls below -di, it represents the minimum price on the crossover day.
the extreme point is then utilized as the market entry level. after a buy signal (+di above -di), traders should wait for the price to surpass the extreme point before executing the buy order. conversely, if the price fails to exceed the extreme point, a short position should be maintained.
adx indicator calculation:
adx = sum ((+di - (-di)) / (+di + (-di)), n) / n
where:
n is the number of periods used in the calculation;
sum (..., n) is the sum over n periods;
+di is the value of the positive directional index;
-di is the value of the negative directional index.
You may also like: heiken ashi indicator with adaptive moving average - excellent alternative for indicator users on MetaTrader 5.
Source Code
#property copyright "robotfx"
#property link "https://robotfx.org"
#property description "this code is educational. feel free to use, modify and upgrade as you wish. visit robotfx.org for professional trading tools"
#include <movingaverages.mqh>
#property indicator_separate_window
#property indicator_buffers 6
#property indicator_plots 3
#property indicator_type1 draw_line
#property indicator_color1 lightseagreen
#property indicator_style1 style_solid.......
⚠ Limitations & Risk Warning
- This tool is provided for educational and testing purposes only.
- Past performance does not guarantee future results.
- Trading involves substantial risk of loss. Use on a demo account first.
- Results may vary depending on market conditions, broker, and settings.
- We recommend thorough backtesting and forward testing before using with real funds.