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The ADX Crossing indicator is an improved and simplified version of the standard ADX Forex indicator in terms of trading. In addition to improving the systematic qualities, ADX Crossing also changed its visualization. If the standard version consisted of three lines, one main and two signal lines, now they are absent on chart, and instead of them on the main price chart, when certain conditions are received, namely the intersection of the ADX lines in a certain order, points of two colors appear, which signal the best opportunity to enter the current market. The ADX Crossing indicator, like its standard version, can be used on any time interval, and any currency pair can also be used.
Input parameters
Since the general calculation scheme for ADX Crossing and the standard ADX is almost identical, it is logical that the input parameters of both indicators will not differ from each other. That is, like the standard version, the ADX Crossing indicator has only one input parameter in the settings. But it is also worth considering that in the indicator settings there are parameters that are responsible for the color range and thickness of its values.
- ADXPeriod - ADX period on which the indicator calculations are based. The default value is 50.
Indicator signals
It is logical that if the ADX Crossing indicator uses ADX calculations for its own signals, then it forms points on the chart that tell about the intersection of the ADX lines in a certain order. For example, a point with the color of the growth value appears on the chart if the ADX lines crossed so that the +D line turned out to be above the -D line, this will signal the possibility of opening a buy trade, and if a point with a fall value appears on the chart, then the -D line has become above +D, and at this time it can be opened a sell trade.
Signal for Buy trades:
- After receiving certain conditions, a color point with a growth value appears on the chart.
After the appearance of such a point on the chart, which appeared by a certain intersection of the ADX signal lines, a long position can be opened. Close the current trade and consider opening a new position after a point with a falling value appears on the chart, which will tell about the reverse intersection of the lines ADX.
Signal for Sell trades:
- A color point with a fall value is formed above a certain candle.
When such a point is received on the chart, a short position may be opened, which is due to the intersection of the signal ADX in a certain order. Close the current position and consider opening a new one after a point with a different color appears on the chart.
Conclusion
The ADX Crossing indicator is no less effective than its standard version, but it can be accurately called easier to use. Due to the presence of dots in two colors, it can be easily determined the moment of entering the market and the direction of a possible trade. Despite the fact that ADX Crossing refers to easy-to-use indicators, it should not be neglected the practice on a demo account, which will allow acquiring certain trading skills.
