Sign In with Google
Sign In with Facebook
ADX Trend MA is a trading algorithm whose calculations are based on the use of standard forex indicators, namely the modification of the ADX indicator using a moving average. Their general interaction is aimed at trading during a certain market trend, thus the indicator's calculations are used to determine the direction and strength of the current trend in the market. The indicator is presented in the lower window of the price chart in the form of three lines, two of which are considered trend and main, and the third is signal. Depending on the current values of the indicator lines, namely, depending on their direction, intersection with each other and location relative to the signal level, the current trend is determined, and at the same time the trade that is opened during this period.
The ADX Trend MA indicator is suitable for trading any currency pairs on all timeframes.
Input parameters
The ADX Trend MA indicator settings consist of several sections responsible for its general functioning. Thus, the Input Parameters section is responsible for its technical work, the Colors section is responsible for its general visualization, and the Levels section is used to add signal levels to the indicator window.
-TimeFrame - parameter for using the trading timeframe. By default, it has the Current time frame value.
-PTPeriod - calculation period of the indicator. The default value is 10.0.
-PTPrice - type of price used to calculate the indicator. The default value is 4.
-Inetrpolate - parameter for using the indicator in multi-timeframe mode. By default, it is set to true.
-MA Period - period of the moving average of the indicator. The default value is 34.
-MA Shift - shift value of the indicator calculations. The default value is 0.
-MA Method - a type of smoothing of the moving average of the indicator. The default value is 3.
Indicator signals
The ADX Trend MA indicator is very easy to use due to its visualization. To open a certain trade using the indicator, one should take into account the strength and direction of the current trend, which in turn is determined by the direction, intersection of its lines, as well as their location relative to the signal level 0. If the current market trend is upward, long positions are opened, if the trend is downward, short positions are opened. When the current trend changes, trades are closed in both cases.
Signal for Buy trades:
- The indicator lines move in parallel, while the line with the growth value together with the signal line is above the 0 level.
Upon receipt of such conditions on a signal candle, a buy trade can be opened, due to the presence of an uptrend in the current market. The trade should be closed when the current trend changes, namely when the opposite conditions are received from the indicator. At this moment, it should be considered opening new trades.
Signal for Sell trades:
- The indicator lines intersect so that the line with the falling value is above the level of 0, and the signal line and the line with the growth value are parallel to them.
A sell trade, due to the presence of a downtrend, can be opened immediately upon receipt of such conditions on a signal candle. Close the current trade and consider opening a new one should be when the trend direction changes, that is when the opposite conditions are received from the indicator.
Conclusion
The ADX Trend MA indicator is a very powerful trading algorithm, as its calculations are based on the performance of time-proven indicators. Although the indicator is easy to use, preliminary practice on a demo account is recommended.
