Forex ADX BARS MQ4 Trading Indicator – Paints the bars in the color corresponding to the current trend. Based on ADX, it can be used to help measure the overall strength of a trend.
The ADX indicator is an average of expanding price range values. The ADX is a component of the Directional Movement System developed by Welles Wilder.
The ADX identifies a strong positive trend when the ADX is over 25 and a weak trend when the ADX is below 20.
Investors can determine directional movement by analyzing the difference between two consecutive low prices and their correlated highs.
The movement is +DM when the current high price, less the previous high price, is greater than the previous low price less the current low. The opposite applies in determining the negative or –DI.