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The ADX of OBV TT is a modified version of ADX, an indicator included in the standard forex set. Unlike the standard version, the ADX of OBV TT indicator is calculated solely on the current market volume, which in turn makes its calculations more accurate. That is, the indicator ADX of OBV TT, in turn, is a system based on the interaction of the ADX and OBV indicators. It is represented in the lower window of the price chart as two intersecting lines located on the market volume histogram. In order to open certain trade, indicator factors and trend with its volume should be taken into account.
The ADX of OBV TT indicator is suitable for use on any timeframe, with any currency pair.
Input parameters
The settings of the ADX of OBV TT indicator consist of several sections. Thus, the Input Parameters section is used to change the values of technical work parameters, while the Colors section affects its color scheme and general visualization. To add signal levels to the indicator window, use the Levels section.
- History - history of values saved by the indicator. Default value is 0.
- ADX Period - ADX indicator period. The default value is 15.
- Trend Period - trend indicator period value. The default value is 15.
- CoefDI - value of the coefficient of smoothing of the signal line of the indicator. The default value is 33.33.
- ADXMode - type of moving average used by the ADX indicator. The default value is Exponential.
- TrendMode - type of the moving average of the trend indicator. The default value is Exponential.
- OBVPrice - price type used to calculate the volume of the current market. Close price by default.
- Trend Level - the value of the signal level of the indicator. The default value is 25.
- ShowDI - parameter of the presence of a DI signal line on the chart. The default value is true.
- Show Trend - parameter of the presence of a trend line on the chart. The default value is true.
- DeltaDI - Delta DI line usage option. Default is true.
Indicator signals
The ADX of OBV TT indicator is a very easy to use and apply trading algorithm. To open a certain trade using the indicator, all indicator values should be taken into account, namely the intersection of its lines and the location of the volume histogram relative to the signal level 25. If an uptrend with high bullish volumes, a long position can be entered, while a short position is entered during a downtrend with high bearish volumes. If the current trend changes and the size of volumes decreases, the trade should be closed.
Signal for Buy trades:
-The indicator lines are moving up, while the main fast line is above the signal line. The volume histogram is above level 25 and continues to grow.
Upon receipt of such conditions on a signal bullish candle, a buy trade can be opened, due to the presence of an uptrend with high volumes. The trade should be closed when the reverse conditions are received. At this moment, a change in the direction of the current trend and a decrease in current volumes is possible, which in turn will allow considering opening new trades.
Signal for Sell trades:
-The indicator lines intersect so that the signal line is higher than the main one. At the same time, the volume histogram falls below level 25.
A sell trade can be opened immediately upon receipt of such a combination of conditions on a signal bearish candle, which will indicate the presence of a downtrend with high bearish volumes. When the trend direction changes and the current volumes decrease, namely, when the opposite conditions are received from the indicator, the trade should be closed. At this moment, one should consider opening new trades.
Conclusion
The ADX of OBV TT indicator is a very effective trading algorithm, the calculations of which are more accurate due to the presence of calculations of current volumes. The algorithm is very easy to use due to clear visualization. At the same time, for its correct application and improvement of trading skills, it is recommended to use a demo account before trading on a real deposit.
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