ADX Signal AM

ADX Signal AM

This indicator is an interpretation of the Average Directional Movement Index (ADX), which helps to determine the presence of a price trend.

It was developed and described in detail in the book "New Concepts in Technical Trading Systems" by Welles Wilder.

The presented indicator displays signals on the price chart when +DI and -DI cross and signals when the ADX value falls or rises in relation to the mutual arrangement of +DI and -DI.

The indicator's buy signals also work as a support level, while sell signals work as a resistance level.

Principles of use:

• When a signal of +DI and -DI cross appears, a pending order to buy or sell the asset should be set at the maximum or the minimum of the bar on which this signal appeared.
• When a signal of ADX falling appears in the presence of an open position, a pending order to close the position should be set at the maximum or the minimum of the bar on which this signal appeared.
• It can also be effective to use the ADX growth/fall signal in the direction of the long-term trend to open a position.

Configurable indicator parameters:

• ADX_Period - the ADX indicator period;
• ADX_Price - the price for calculating ADX;
• Intersection_of_the_DMIp_DMIm - the indicator signals when +DI and -DI cross;
• Height_ADX - the indicator signals when ADX grows;
• Falling_ADX - the indicator signals when ADX falls;
• Distance - the distance between the indicator signal and the price chart;
• Alerts - the indicator displays a dialog box containing user data;
• Send_Mail - the indicator sends an email to the address specified in the settings window on the "Mail" tab;
• Send_Notification - the indicator sends a notification to mobile terminals whose MetaQuotes ID is specified in the settings window on the "Notifications" tab.