The ADX Buy/Sell Cross Signals indicator for the MT4 platform generates easy to read forex signals based on the crossover of DI- and DI+.
A blue arrow (buy) occurs when DI+ crosses above DI- from below. This creates a bullish ADX trend.
A red arrow (sell) occurs when DI- crosses above DI+ from below. This creates a bearish ADX trend.
This indicator works well in trending markets but will fail in range-bound markets (false signals).
Therefore, use it in agreement with a trend following indicator such as the 75 period EMA or 100 period SMA.
When price is positioned above the trend following indicator line, only trade the blue ADX buy arrows.
When price is positioned below the trend following indicator line, only trade the red ADX sell arrows.
The default ADX crosses period is set to 14 but can be changed to whatever value you need.
Experiment with this powerful setting.
Free Download
Download the “adx-buy-sell.mq4” MT4 indicator
Indicator Chart (EUR/USD D1)
The EUR/USD Daily chart below displays the ADX Buy/Sell Cross Signals Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the ADX Buy/Sell Cross Signals MT4 forex indicator are easy to interpret and go as follows:
Buy Signal: Open a long trade when a blue arrow to buy appears on the MT4 chart.
Sell Signal: Open a short trade when a red arrow to sell appears on the MT4 chart.
Trade Exit: Close the open buy/sell trade when an opposite signal occurs, or use your own method of trade exit.
ADX Buy/Sell Cross Signals + Trend Master Forex Day Trading Strategy
This day trading strategy for MT4 combines the ADX Buy/Sell Cross Signals Indicator with the Trend Master Indicator.
The Trend Master shows the market trend with arrows: a blue arrow signals a bullish trend, a red arrow indicates a bearish trend.
The ADX Buy/Sell Cross Signals adds timely entry signals: a blue arrow for a buy, a red arrow for a sell.
By using both indicators together, you align entries with the overall trend and increase the chance of catching strong intraday moves.
This strategy works on M15 and H1 charts and fits traders who want clear, rule-based setups for major currency pairs during active market hours.
Buy Entry Rules
- Confirm the most recent arrow from Trend Master is blue, indicating a bullish trend.
- Wait for a blue arrow from the ADX Buy/Sell Cross Signals while the trend remains bullish.
- Enter a long (buy) trade as soon as the blue ADX signal arrow appears.
- Place a stop loss a few pips below the recent swing low (or a recent support area).
- Set take profit at the next significant resistance level or previous swing high.
Sell Entry Rules
- Confirm the most recent arrow from Trend Master is red, indicating a bearish trend.
- Wait for a red arrow from the ADX Buy/Sell Cross Signals while the trend remains bearish.
- Enter a short (sell) trade when the red ADX signal arrow appears.
- Place a stop loss a few pips above the recent swing high (or a recent resistance area).
- Set take profit at the next significant support level or previous swing low.
Advantages
- Combines trend direction with entry signals, reducing counter‑trend risk.
- Clear arrows make entries easy to identify, even for less experienced traders.
- Works well on M15 and H1 charts, offering flexibility for both quick-day trades and slightly longer swings.
- Suitable for major forex pairs where price tends to respect support and resistance zones.
- Helps avoid emotional trading by following fixed rules.
Drawbacks
- In ranging or choppy markets, signals can be misleading and result in false entries.
- Waiting for both trend and signal confirmation may result in missing the early part of the move.
Example Case Study 1 – EURUSD H1
During an uptrend on EURUSD H1, Trend Master displayed a blue arrow indicating a bullish trend.
Shortly after, the ADX indicator issued a blue arrow at 1.1125.
A buy trade was placed with a stop loss 10 pips below the recent swing low at 1.1115.
Over the next several hours, price climbed steadily and reached the next resistance zone at 1.1190, giving a profit of 65 pips.
Example Case Study 2 – GBPUSD M15
On GBPUSD M15 during a London–New York overlap session, Trend Master showed a red arrow indicating a bearish trend.
The ADX indicator then produced a red arrow at 1.2758.
A sell trade was opened with a stop loss 8 pips above the recent swing high at 1.2766.
The pair moved downward under bearish pressure and hit the next support zone at 1.2675 over the following hours.
The trade closed for a profit of 83 pips as momentum slowed and price began consolidating.
Strategy Tips
- Wait for both the Trend Master and ADX signal arrows to align before entering to ensure high-probability trades.
- Use higher timeframe confirmation (H4) to verify the overall market trend before taking M15 or H1 trades.
- Consider partial profit taking at key intraday levels to lock in gains while letting the remainder run.
- Adjust stop loss based on recent price action rather than fixed pips to account for volatility changes.
- Avoid trading in low-volume periods, such as the Asian session for non-Asian pairs, to reduce choppy movements.
- Keep a consistent trading routine with predefined entry, exit, and risk management rules.
- Monitor correlation between pairs to avoid multiple trades in highly correlated pairs simultaneously, which can increase risk.
- Use a small trailing stop once the trade moves in your favor to capture extended trends while protecting profit.
- Review daily performance to identify patterns, mistakes, and pairs that perform best with this strategy.
Download Now
Download the “adx-buy-sell.mq4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (ADX crosses period) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: Trend
