Best ADX Setting for H4 Chart

How to Add ADX Indicators on MetaTrader 4 Charts

Step 1: Open MetaTrader 4 Platform Navigator Window

Open MetaTrader 4 Navigator panel as shown below - Navigate to 'View' menu (then click it) & then choose the 'Navigator' window panel (click), or From the Standard Tool bar click the 'Navigator' button or use key-board shortcut keys 'Ctrl +N'

On MetaTrader 4 Navigator window, choose "Technical Indicators", (DoubleClick)

Best ADX Settings for 1 Hour Chart - Best ADX Settings for 4 H Chart

Adding ADX MT4 Indicator

Expand the expand button (+) or doubleclick the 'indicators' menu, after this the button will appear as (-) and will now display a list as shown below - select the ADX indicator from this list of gold indicators so as to add the ADX indicator on the chart.

Best ADX Settings for 1 Hour Chart - Best ADX Settings for 4 H Chart

How to Add Custom ADX Indicator to MetaTrader 4

If the ZDX technical indicator you want to add is a custom indicator - for example if the ADX technical indicator you want to add is a custom ADX indicator you will need to first add this custom ADX indicator on MetaTrader 4 platform & then compile custom ADX indicator so that the newly added ADX custom MT4 indicator pops up on the list of custom indicators on MetaTrader 4 platform.

To learn how to install ADX indicators on MT4, how to add ADX indicator window to MT4 and how to add ADX custom MT4 indicator on MT4 - How to add custom ADX Indicator in MetaTrader 4.

ADX Indicator Explained

ADX Technical Analysis and ADX Signals

ADX indicator is a momentum indicator used to figure out the strength of price trend: ADX indicator is derived from the DMI - Directional Movement Index which has 2 lines.

+DI - Positive Directional Movement Index

–DI - Negative Directional Movement Index

ADX is calculated by subtracting these two values and applying a smoothing function.

Best ADX Settings for 1 Hour Chart - Best ADX Settings for 4 H Chart

The ADX is not a directional indicator but a measure of the strength of the price trend which has a scale of Zero to Hundred.

Higher the ADX indicator value the stronger the price trend.

ADX value of below 20 indicates that the price is not trending but moving in a range.

ADX value of above 20 confirms a buy or sell signal & indicates a new price trend is emerging.

Values above 30 indicates a strong price trend.

When ADX turns down from above 30, it signals that the current price trend is losing momentum.

Directional Movement Index Indicator

Since the ADX alone is a directionless indicator it's combined with the DMI index to figure out the direction of the price trend.

Best ADX Settings for Gold Swing Trading - Best ADX Settings for Scalping Gold Trading

ADX and DMI Index

Best ADX Settings for Gold Swing Trading - Best ADX Settings for Scalping Gold Trading

When the ADX is combined with DMI index a trader can figure out the direction of the price trend and then use the this ADX indicator to determine the momentum of the prevailing price trend direction.

ADX Gold Analysis and How to Generate Trade Signals

Buy Gold Signal

A buy signal is generated when +DI is above –DI, & the ADX indicator is above 20

The Exit signal is generated when the ADX indicator turns down from above 30.

Best ADX Settings for Gold Swing Trading - Best ADX Settings for Scalping Gold Trading

Sell Signal

A sell signal is generated when the –DI is above +DI, and the ADX indicator is above 20

The Exit signal is generated when the ADX indicator turns down from above 30.

Best ADX Settings for Gold Swing Trading - Best ADX Settings for Scalping Gold Trading