CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

The Advanced ADX indicator

The traditional ADX indicator, designed by J. Welles Wilder, indicates the strength of the trend. The Advanced ADX also indicates the direction of the trend. It is a great indicator to measure both the strength AND the direction of the trend.

The advantages of the Advanced ADX indicator:

  • A precise indicator of the market trend.
  • A precise indicator of the strength of the trend.
  • It can be applied to every instrument.
  • It can be used in any time frame.
  • Easy to understand and easy to use.
  • The indicator is FREE.

Interpreting this technical analysis indicator is easy. A green histogram indicates that the trend is bullish. A red histogram indicates that the trend is bearish. A high value indicates a strong trend. A low value indicates a weak trend. Traders usually use these values:

  • 0-25: No trend or weak trend
  • 26-50: Strong trend
  • 51-75: Very strong trend
  • 76-100: Extremely strong trend

The Advanced ADX indicator can be used as a signal or as a signals filter in the NanoTrader platform.

This example shows the Advanced ADX indicator in a 60-minute chart, calculated over a 14-day period. The trend is bearish (red histogram) and weak (22,16).

The Advanced ADX indicator.
 

This example shows the DAX market index in a 60-minute chart. The Advanced ADX indicator informs the trader that the trend currently bearish (red histogram) and weak (22,68) is.

The best trend indicator?
 

This example shows a trend, which is bullish (green histogram) and strong (38,98). The traded added the DMI lines (DI+ / DI-), which are used to calculate the ADX.

DMI and ADX technical analysis.
 

Practical implementation

Open the chart of the instrument you wish to trade.

In the WHS Proposals folder, select the Advanced ADX indicator.