Forex ADX Crossing Signals MQ4 Trading Indicator – Directional system (ADX) – The directional system has been created by George Wilder in the middle of the 70s as an addition to the PARABOLIC SAR system, and then further developed by a number of analysts.
A popular trading strategy to trade on the ADX is based on a crossover of the directional movement lines (+DI and -DI) which was developed directly by the indicator’s creator Mr. Wilder.
The trading strategy states that the first condition for a trade setup is that the ADX has a value of 25 or above, which indicates a trending market.
A buy order is triggered when +DI crosses above -DI, i.e. the underlying trend is an uptrend, while a sell signal is triggered when -DI crosses above +DI, i.e. the underlying trend is a downtrend.