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All Bands Stop.mq4
Tuesday, August 11, 2009
Average Directional Index (ADX) MT4 Indicator
The Average Directional Index (ADX) depicts a presence or absence of a trend. ADX advices on the strength of the dominant forces that move market prices here and now.In other words, ADX advices on trend tendencies: whether the trend is going to continue and strengthen or it is about to lose its positions.
The author of Average Directional Index J. Welles Wilder considers his ADX indicator as a primary achievement; and only because signals given by ADX are not an easy to take a grasp of from the first look, many Forex traders avoid using ADX in favor of more visually comprehensive indicators.
How to trade with ADX
ADX staying below 20 level — there is no trend or the trend is weak.
ADX moving above 20 level — trend is strong.
ADX passing 40 level — trend is extreme.
ADX value rising — trend is going stronger, falling — trend is weakening.
+DI stays on top of -DI — uptrend is in place.
-DI stays on top of +DI — downtrend is in place.
Two DI cross — trend is changing.
ADX indicator formula
More Information About ADX Indicator
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ADX.mq4
Monday, August 10, 2009
Donchian Channels MT4 Indicator
Donchian channels are price channel studies that are available on most charting packages and can be profitably applied by both novice and expert traders. Although the application was intended mostly for the commodity futures market, these channels can also be widely used in the FX market to capture short-term bursts or longer-term trends. Created by Richard Donchian, considered to be the father of successful trend following, the study contains the underlying currency fluctuations and aims to place profitable entries upon the start of a new trend through penetration of either the lower or upper band. Based on a 20-period moving average (and thus sometimes referred to as a moving average indicator), the application additionally establishes bands that plot the highest high and lowest low. As a result, the following signals are produced:
* A buy, or long, signal is created when the price action breaks through and closes above the upper band.
* A sell, or short, signal is created when the price action breaks though and closes below the lower band.
* A buy, or long, signal is created when the price action breaks through and closes above the upper band.
* A sell, or short, signal is created when the price action breaks though and closes below the lower band.
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Donchian Channels.mq4
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