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The VHF Adaptive ADXm is an improved modification of the ADX indicator included in the standard forex set. In addition to improving the technical performance of the indicator by adding the Vertical Horizontal filter, as well as improving the accuracy of its signals, its visualization has also been changed. Unlike the standard version, presented as three lines, the VHF Adaptive ADXm indicator is presented in the lower window of the price chart as two lines, one of which is the main one, and the second is a signal one. Intersecting with the signal line, the main one, depending on the current market conditions, is painted in one of two colors, which help in choosing the direction of the current position. Thus, the indicator helps to determine the current trend and find the best points to enter the market.
The VHF Adaptive ADXm indicator can be used on any convenient time frame, but preference should be given to larger time intervals. Any currency pair can be used.
Input parameters
The settings of the VHF Adaptive ADXm indicator, in addition to the sections responsible for colors and adding signal levels, consist of only two input parameters, changing which to some extent affects the overall operation of the indicator.
- ADXm period - parameter responsible for the period of the ADXm indicator. The default value is 14.
- VHF Adaptive ADXm? - parameter responsible for notifications about the formation of signals. The default value is correct.
Indicator signals
The VHF Adaptive ADXm indicator is very easy to use, so traders with different levels of experience can understand its signals. In order to open a position using the indicator, it is first needed to determine the current trend by the color of the main indicator line, its intersection with their signal location relative to level 0. Then, after determining the current trend, a certain position can be opened in its direction.
Signal for Buy trades:
- Indicator lines intersect so that the main line is above the signal line. In this case, the main line is painted in color with the growth value.
- Both lines are moving up and are above level 0.
After receiving such conditions, the indicator generates a signal, after which it can be opened a long position, due to the presence of an uptrend in the market. Such a trade should be closed when a reverse intersection of the lines is received, which will indicate the end of the current trend and the beginning of a new one, which allows opening new positions.
Signal for Sell trades:
- The indicator lines intersect with each other, while the signal line is above the main one. The main line has a color with a falling value.
- Indicator lines move down and fall below level 0.
After receiving such conditions, it is possible to open a short position due to the presence of a downtrend in the market. Such a position should be closed after crossing the indicator lines in the opposite direction, since in this case a change in the current trend is possible, which makes it possible to open new trades.
Conclusion
The VHF Adaptive ADXm indicator is not only simple, but also very effective to use, as it gives the opportunity to make good profits if used correctly. At the same time, the indicator can be used on any timeframe, with any currency pair, since it works equally well on any. However, for a more accurate recognition of indicator signals, as well as for the ability to use it, first practice on a demo account is recommended.
