ADX Color Indicator

ADX Color Indicator

The ADX Color indicator is a volatility-based system designed to display the signals of the ADX using colored histogram bars.

The Traditional Average Directional Index (ADX) indicator that comes with the MetaTrader platforms was built with oscillating lines to show the strength or weakness of a financial instrument. However, interpreting the signal of this indicator may be somewhat complex, especially for a beginner trader. Therefore, the ADX Color indicator is a MetaTrader 4 (MT4) technical analysis tool designed to display the strengths and weaknesses of the market trend using colored histogram bars. This makes it a lot easier to read and interpret. Besides, it also makes the indicator visually appealing to the eye.

ADX Color Indicator Features

The ADX Color indicator was built with red, lime, and gray colored histogram bars to enable forex traders to ascertain the strength condition of the trend with less hassle. The lime/red histogram bars depict a bullish/bearish trend, while the black bars signify that the market isn’t trending.

Furthermore, the indicator’s parameters are open for customization, which allows users to adjust how it reads and displays the trend condition of the market.

Benefits of the Indicator
User-friendly: The ADX Color indicator makes it easy for even a beginner to read and interpret the signal of the ADX indicator.
Trend Analysis Confirmation: The ADX color indicator would play a significant role as a vital confluence during technical analysis.
Trend Information: Since the indicator shows the strength condition of the market’s trend, the signal may be used as one of the bases for a trade entry, holding a trade position, or exiting the market.