The Advanced ADX Indicator is a visual oscillator that plots the ADX Indicator’s values.
However, instead of the moving lines that one gets to see with a regular ADX Indicator, the Advanced ADX Indicator plots values as a histogram.
Thus, the trend strength is displayed differently and allows for better trading decisions to be made.
Advanced ADX Indicator: When to go Long
When to go Long using the Advanced ADX Indicator
The strength of the uptrend is rising when you see the Advanced ADX Indicator plotting higher green lines.
Firstly, wait for such a signal, and then go long on the next candlestick that opens.
When to Exit Your Long Positions
Either set a fixed risk-reward ratio or follow the Advanced ADX Indicator to trail the trend.
Note that this second method works only when the evolving trend is strong. This can help you to lock in bigger profits.
Advanced ADX Indicator: When to Short
When to go short using the Advanced ADX Indicator
When the price is moving in a downtrend, the Advanced ADX Indicator will start plotting rising red bars.
Wait for such a bar to form and then go short on the open of the next candlestick session.
When to Exit Your Short Positions
Set your take profit to a fixed risk-reward ratio or use the trend strength Indicator to trail your profits.
This can only work when the prevailing trend is strong.
It will help you to lock in big profits when prices continue to move in the trend.
Where to set the Stop loss using the Advanced ADX Indicator
Stops for long or short positions should be set by looking at the left side of the chart.
Identify the most recent swing high (for shorts) and swing lows (for longs) and then place your stops few pips above or below this price level.
Conclusion
The Advanced ADX Indicator simply depicts the strength of the trend.
Unlike the regular ADX Indicator, the Advanced ADX Indicator plots the values as histograms.
This can offer traders easy to understand signals and allows them to go long or short.
How to Increase Your Winning Ration with Advanced ADX Indicator?
When you add the Stochastic Cross Alert Indicator and use it together with a proven trend trading system like the Elite Swing Trader or Simple Trend Trading System, you can only expect to achieve a better win ratio and better risk-reward ratio.
Recommended Time Frames
Technically speaking, you can use this MT4 indicator for all time frames.
However, the shorter the time frame, you will see more fluctuation and possibly more whipsaw which may cause small losses that can eat up your portfolio quickly.
We recommend that you use higher time frames like the H4 or even higher for better consistency.
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