The ADX Indicator

One of the indicators in MT4 is the ADX (Average Directional Movement Index). This indicator is in fact already very powerful use for trading forex. ADX is used to see the strength of the trend is going. Because basically the movement trend market that there are three, uptrend, downtrend, and sideways (range). Actually, that's the key to trading forex i.e. know the trend is going on in the market. We do the actual forex trading activity following the direction of the trend. If we can follow the direction of the trend correctly then we will benefit. If our order is not in line with the direction of the trend and in the end we will see a loss.

MT4 already provides many default indicators are practical and easy to use for forex trading. But many traders do not know the usefulness of each indicator that. If we already know and understand about the indicator ADX for sure we are not going to use other indicators. Following is the display of the ADX indicator by default on MT4:

Parts of the ADX indicator is the ADX line, + D  line, and - D line. ADX line function to find out the strength of the trend. If the ADX line is rising means the strength of the burgeoning trend. If the ADX line was further down then the power trend was further weakened. While the + D line as a sign of uptrend line, means if + D line is above the – D line then movements of the market are the uptrend. While the – D line as a sign of the downtrend line. If the – D line is above + D line then movements of the market are a significant downtrend.

How to install this indicator are as follows:
1. Select the icon "Indicators list" (green plus sign) on the icon bar at the top of MT4

2. A dialog box appears, select the "Trend" then select the "Average Directional Movement Index"

3. Indicators appear by default on the chart the ADX

4. We can change the color and lines as you wish. Do I right click on the chart, appears "Indicators List".

5. Indicator ADX will appear. Then click the "Edit" button it will pop up a dialog box,

6. And select "Colors". There we can change the color of  + D line and  – D line as you wish.

7. In our example, we change the color + D line with green color, and change – D line in red. We also change the line thickness to be easy.

8. If you are confident with the change and then click the OK button, then the display indicator ADX will appear like this:

Then, how do I use the ADX indicator with trading?

The most important thing to note is the direction of the ADX line. If ADX line increasing up then it is the harbinger of a trend is being strengthened. If ADX line was further down then it is the harbinger of a trend is being weakened. If ADX line averages mean the market is sideways.
We go to the market when the ADX is being increased because that's when the trend is strong.

Note the picture below:

Buy - Sell with The ADX Indicator

Enter BUY
If the + D line (green) crosses the – D line from bottom to the top while the ADX line goes up, the more means a strong bullish trend, then we get BUY.

Enter SELL
If the - D line (red) crosses the + D line from bottom to the top while the ADX line goes up, the more means a strong bullish trend, then we enter a SELL.

So, how to use a powerful indicator ADX for forex trading. We should test in trading a demo account until we really mastered the use of these indicators.