DMI ADX Histogram Indicator Download for MetaTrader 4 - Free - [TFlab]

The DMI ADX Histogram Oscillator is a combination of the ADX and DMI indicators and is a utility MetaTrader 4 oscillator .

This indicator analyzes market trend ( DMI ) and trend strength ( ADX ); green histogram bars represent uptrend , while red bars represent downtrend .

Indicator Table

Indicator overview

Calculating the ADX line can be complicated, but simply put, the stronger the trend, the higher the ADX line value. This DMI Histogram shows the difference between these two lines. Forex and other market traders can incorporate the DMI Histogram with the ADX line into their trading strategies .

Indicators are in an upward trend

On the price chart for the GBP/JPY currency pair , when the indicator's histogram turns green and crosses above the zero line, traders can enter a buy trade .

In addition, after the histogram changes to red , they can exit the trade .

Indicators are in a downward trend

In the image below, the price chart of the CAD/JPY currency pair is shown on a 1 hour time frame.

As the histogram changes from green to red , it highlights the suitable selling zone for traders.

When the histogram turns back to green, the trader can take an exit signal for the trade.

Indicator Settings

• Chart Theme: background color of the chart;
• Ma Period: The calculation period of ADX, the default setting is 14.

Conclusion

Additionally, traders can enhance their buy and sell trades using multiple time frames ( MTF ) and utilize the DMI ADX Histogram Indicator .