The Average Directional Index (or ADX indicator) is a technical tool designed to measure the strength of a market trend. The ADX indicator is used for various purposes, such as measuring trend strength, as a trend and range finder, and as a filter for different Forex trading strategies.
A simple and effective strategy that is used by many traders is a crossover strategy that uses the ADX in combination with the +DI and –DI lines. In this trading strategy an order is placed whenever the +DI and –DI lines cross, as long as the ADX is also above 25, indicating a strong trend.
The traditional setting for the ADX indicator is 14 time periods, but analysts have commonly used the ADX with settings as low as 7 or as high as 30. Lower settings will make the average directional index respond more quickly to price movement but tend to generate more false signals.
Many traders will use ADX readings above 25 to suggest that the trend is strong enough for trend-trading strategies. Conversely, when ADX is below 25, many will avoid trend-trading strategies. Low ADX is usually a sign of accumulation or distribution.
What is the free ADX EA?
It will analyse all of the charts that you attach it to in the MetaTrader 4 (MT4) platform for buy or sell signals which can save you plenty of time and allow you to simultaneously follow lots of currency pairs or other financial instruments.
How does the free ADX EA work?
When the ADX EA finds a valid trading signal according to its built-in algorithm, it will send you a signal alert via SMS, email or a platform pop-up. You can choose the alerts that you wish to receive from the ADX EA settings.
Not only can it send you alerts for manual trading, but you can set it to actually place trades on your behalf in case you are not around to do it yourself. It includes customisable settings and money management features such as stop loss, take profit, break even and a trailing stop.
ADX EA Trading Strategy
I have built this free ADX EA for MT4 (MQL4) so that you can use it to generate signals and automatically trade based on the ADX trend trading strategy. I have left the ADX expert advisor settings available as external inputs for you to adjust depending on your preferred trading style. This includes the ADX +DI and -DI lines, along with the ADX periods.
ADX Trend Strategy
- Buy Signal: +DI line crosses above the -DI line and the ADX is above 20
- Sell Signal: -DI line crosses above the +DI line and the ADX is above 20
ADX EA Features
- All of the ADX EA settings are customisable
- The ADX robot can send ADX signals and trade automatically
- Keep full control over your money management
- The ADX EA MQL4 is developed for the MT4 platform
- The ADX MT4 EA can be used on any MT4 forex broker
- The ADX EA is free to use without any restrictions at all
- Includes easy to understand setup instructions
ADX EA Settings
- Expert Name
- Pop Up Alerts
- Email Alerts
- SMS Alerts
- Days Filters
- Hours Filter
- Magic Number Buy
- Magic Number Sell
- Maximum Spread
- Maximum Slippage
- Open Orders Limit
- Use Risk
- Risk Percent
- Stop Loss
- Take Profit
- Close Opposite Signal
- Use Break Even
- Break Even Point
- Use Trailing Stop
- Trailing Gap
- Close Percent
- Minimum Lot Close
- ADX Trend
- ADX Period
- ADX Level
Conclusion: Is this free ADX EA for me?
If you are looking to get automated ADX signals in MT4 then yes, this can do the job. It can send you buy or sell signal alerts and place trades without you needing to do anything. As with any automated or manual forex strategy, there is no guarantee at all on the results that you will get.
This ADX robot has not been optimized so it does not include set files. You will need to choose your own settings. However, you do have unlimited access so you can test it as much as you want on all of your favourite currency pairs and chart timeframes.
If you manage to come up with some interesting settings that show good historical performance, please feel free to share them with me.
You might also want to check out my other free forex EA’s that you can download:
- Free Bollinger Bands EA
- Free RSI EA
- Free CCI EA
- Free Moving Average EA
- Free Envelopes EA
- Free Ichimoku EA
- Free Stochastic EA
- Free Parabolic SAR EA
- Free MACD EA
If you are looking for a forex robot that combines multiple technical indicators along with price action analysis, please feel free to take a look at my free forex robot.
Self-confessed Forex Geek spending my days researching and testing everything forex related. I have many years of experience in the forex industry having reviewed thousands of forex robots, brokers, strategies, courses and more. I share my knowledge with you for free to help you learn more about the crazy world of forex trading! Read more about me.