The ADX Buy/Sell Cross Signals indicator for the MT4 platform generates easy to read forex signals based on the crossover of DI- and DI+.
A blue arrow (buy) occurs when DI+ crosses above DI- from below. This creates a bullish ADX trend.
A red arrow (sell) occurs when DI- crosses above DI+ from below. This creates a bearish ADX trend.
This indicator works well in trending markets but will fail in range-bound markets (false signals).
Therefore, use it in agreement with a trend following indicator such as the 75 period EMA or 100 period SMA.
When price is positioned above the trend following indicator line, only trade the blue ADX buy arrows.
When price is positioned below the trend following indicator line, only trade the red ADX sell arrows.
The default ADX crosses period is set to 14 but can be changed to whatever value you need.
Experiment with this powerful setting.
The EUR/USD Daily chart below displays the ADX Buy/Sell Cross Signals Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the ADX Buy/Sell Cross Signals MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Open a long trade when a blue arrow to buy appears on the MT4 chart.
Sell Signal: Open a short trade when a red arrow to sell appears on the MT4 chart.
Trade Exit: Close the open buy/sell trade when an opposite signal occurs, or use your own method of trade exit.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (ADX crosses period) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the adx-buy-sell.mq4 into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)