The ADX Cloud indicator for Metatrader 5 follows the trend and delivers profitable buy and sell cloud based trading signals to Forex traders.
ADX is the abbreviation of average directional index.
The indicator performs optimally during trending market conditions but is less effective when the market is experiencing sideways movement.
To identify the market trend using this technical tool, follow the guidelines below:
- A green colored ADX cloud shows a bullish market trend.
- A red colored ADX cloud shows a bearish market trend.
You have the flexibility to modify the following indicator inputs and parameters: period, alpha 1, alpha 2.
The indicator works for any trading instrument (Forex, Stocks, Indices, Metals, etc.) supported by the Metatrader 5 charting platform.
Please make yourself familiar with this technical indicator and test it first on a demo account before using it on a live trading account.
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Chart Example
The following chart shows how the ADX Cloud indicator looks when applied to the MT5 chart.
How To Buy And Sell Currency Pairs With The ADX Cloud Indicator?
Find a simple trading example below:
Buy Signal
- A buy signal is generated when the colored green ADX cloud appears on the chart.
- Open a buy market order and place a protective stop order below support.
- Exit the buy trade for a risk to reward ratio of at least 1.5.
- Optional: hold the buy trade until a sell signal gets displayed on the chart.
Sell Signal
- A sell signal is generated when the colored red ADX cloud appears on the chart (see chart example above).
- Open a sell market order and place a protective stop order above resistance.
- Exit the sell trade for a risk to reward ratio of at least 1.5.
- Optional: hold the sell trade until a buy signal gets displayed on the chart.
