The ADXdon MetaTrader 4 indicator is essentially another version of the ADX indicator that is used in measuring the strength of the trend. The Average Directional Index (ADX) is essentially deployed to pinpoint the strength of the prevailing forces that drive prices in the market.
The ADXdon guides investors on trend leanings: whether the trend would continue and toughen or whether it is in the verge of losing its positions.
J. Welles Wilder is the Author of the Average Directional Index and considers the indicator a major feat; and just because the alerts issued by ADXdon are essentially not easy to understand at a first glance, a lot of traders tend to avoid using the ADXdon in relation to more graphically all-inclusive indicators.
The ADXdon has two lines: ADX itself (Green), + DI (Red) and –DI (Blue).
If all the readings of the ADXdon are below 20, it is indicative of a weak and uncertain trend, while ADXdon readings above 20 indicates a pickup in trend.
This is somewhat the easiest explanation for the purpose of the ADXdon. The ADXdon MetaTrader 4 indicator allows traders to decide if the trend is weak or strong and seemingly pick the most suitable strategy to adopt: a consolidation strategy with no weighty price change or a trend following strategy.
It is possible to add an additional line to the ADXdon MetaTrader 4 indicator at the 40 level. This is largely because when the ADXdon passes the 40 level, then it is a suitable time to start easing out on trades and safeguarding the remaining open positions with trailing stop.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customization options: Variable (ADXPeriod, DiPlusPeriod, DiMinusPeriod), Colors, width & Style.
Time frames: 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week