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The ADX Buy Sell is a modified version of the standard forex indicator ADX, made in the form of arrows that help to find the best moment to open positions. Due to the fact that an arrow of a certain color is formed above or below any candle, simple trading conditions are created, that is when an arrow is formed, a certain position can be opened and closed in the same way. The arrows on the chart are formed after the signal lines of the ADX +D and –D indicator cross. If +D is above the –D line, then an arrow with the value growth, and if vice versa, -D is higher than +D, then the arrow with the value of the fall. Trading using the indicator can be made on any timeframe, using any currency pair.
Input parameters
Like the standard ADX, as well as similar versions, ADX Buy Sell has only one input parameter in its settings, but this is quite enough for the indicator to work properly. At the same time, the colors and width of its arrows can be changed in the Colors section at own discretion.
- ADXcrossesPeriod - parameter responsible for the value of the period of signal lines crossing the ADX indicator. The default value is 14.
Indicator signals
As signals of the ADX Buy Sell indicator, the formation of another arrow on the chart is used. That is, if the signal lines of the ADX indicator cross in a certain direction, and one of them turns out to be higher than the second, an arrow of any color or direction will appear on the chart. It is logical that if an upward arrow is formed, a long position is opened, and if it is vice versa, then a short one.
Signal for Buy trades:
- An arrow is formed on the chart, which goes up and at the same time is colored with the growth value.
That is, after the ADX lines intersect so that the +D line is higher than the –D line, an arrow with a growth value appears on the chart, and in this case, a buy trade is opened. Such a trade should be closed after a new arrow appears on the chart , in which case the possibility of opening new positions should be considered.
Signal for Sell trades:
- An arrow with a falling color will appear above a certain candle, pointing down.
When crossing the lines of the signal lines -D, which is above the +D line, an arrow is formed with the value of the fall, and in this case a short position may be opened. It should be closed after a new arrow forms on a certain candle, as in this case it may open a new trade.
Conclusion
The ADX Buy Sell indicator is very simple and easy to use, while it is no less effective than the standard ADX. Due to the fact that the indicator forms arrows on the chart, it can be easily determined the moment of entry and exit from the market. Thus, the indicator is perfect for work in strategies to help find points for opening positions. To obtain certain skills in using the indicator, preliminary work on a demo account is recommended.
