Directional Movement System or ADX or DMI is a popular indicator and the data it gives can help us to know what’s going on in the market, is it trending or not? If it’s trending what’s the direction of the trend and how strong is the trend? ADX gives the answer to all these questions, our indicator simplifies the ADX output data.
The idea is very simple if ADX was above a defined level suppose X it means the market is trending and then it checks the ADX indicator DI lines, is plus DI line above minus DI line? If it’s then we are in an uptrend market and vice versa for the downtrend.
It’s a multi-timeframe indicator so the best way to use it is changing the time frame of it to a longer time frame in comparison with your chart time frame suppose you are trading on one hour chart the best time frame for you will be daily so set it’s time frame to D1 and then use it as a trend direction filter.
- Popup, sound and email alert on trend direction change
- Shows not only trending condition but also the market neutral condition
- Easy to set up and use
- A multi-timeframe indicator