ADX Smoothed Indicator
Forex momentum from the best ADX Smoothed Indicator for MT5. Find overbought/oversold levels.
Description
The ADX Smoothed Indicator is a momentum oscillator that reports the direction of a trend. The indicator works similarly to the traditional ADX (Average directional index). However, it smooths out the signal line.
The indicator draws three lines; ADX, Di+ and Di- to represent the overall trend of the market. A crossover between Di+ and Di- indicates a trading opportunity.
You can also find overbought and oversold levels as this indicator fluctuates between 0 and 100.
The advantage of the indicator is that it works on any timeframe.
How to use the ADX Smoothed Indicator for MT5?
The above H1 chart shows the BUY and SELL indicator signals.
To find trading signals, you need to look at Di+ and Di- crossovers. When Di+ crosses Di-, it is a BUY signal and you can go long.
Conversely, when Di- crosses Di+, it is a SELL signal and you can go short.
If you need additional signal confirmation, you can apply moving averages and a smoothed ADX indicator.
Conclusion
ADX Smoothed for MT5 reports the direction of the trend by plotting Di+ and Di- signal lines. When both lines cross, you can enter the trade.
If you wish, you can download the indicator for free on our website.