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The ADX M indicator, which can also be known as ADX M ANG, is used in trading to identify the current trend and its strength, as well as to find the right moment to enter the market. The indicator itself can be considered a modification version of the standard ADX indicator with a change in visualization. It is presented in the lower window of the price chart in the form of two lines: signal and main, which, under certain conditions, cross each other and the levels available in the indicator window. In turn, the main line is painted in one of two colors, thanks to which it can be quickly determined the current market movement.
The ADX M indicator is suitable for use on any timeframe, with any convenient currency pairs.
Input parameters
The ADX M indicator settings consist of only two input parameters, as well as sections that are responsible for the color gamut and thickness of its values, as well as adding additional levels to the indicator window.
- p - parameter responsible for the indicator period. The default value is 14.
- Level - value of the main signal level of the indicator. The default value is 25.
Indicator signals
Using the ADX M indicator, everything is simple. The main thing is to understand the scheme of its work. Before opening a position in a certain direction, it is necessary to determine the current position, taking into account the color of the main line, its intersection with the signal line and their direction, and being relative to the signal levels. And only when receiving a certain combination of conditions, a trade can be opened in the direction with the current market movement.
Signal for Buy trades:
- The main line of the indicator, colored with the growth value, crosses the signal line from the bottom up.
- Both lines move up and break through their level 0.
After the coincidence of such conditions on a certain candle, a long position can be opened. It should be closed after receiving the opposite conditions, namely, the reverse intersection of the indicator lines. In this case,it can be prepared to open new positions.
Signal for Sell trades:
- The indicator lines intersect so that the signal line is located above the main one. At the same time, its main line has a color with a falling value.
- The indicator lines start moving down, crossing level 0.
After receiving such a line intersection, with the presence of other conditions, a short position can be opened. Such a position should be closed after a reverse intersection of the indicator lines is received, since in this case it becomes possible to open new trades.
Conclusion
The ADX M indicator is not only extremely simple, but also very effective in practice, which can be said based on its standard version. The indicator can be used in trading as the only or additional indicator that confirms the signals. However, in any way of using it, it is needed to have certain skills its use, which can be obtained by first using a demo account.
