ADX Color Indicator for MetaTrader 4 – Download - [TradingFinder]

The ADX Color Indicator is an enhanced version of the classic ADX (Average Directional Index) used in technical analysis to evaluate trend strength across financial markets, including Forex and cryptocurrencies.

This trading tool uses colored histogram bars to visually display market conditions in terms of trend strength and direction, providing suitable entry and exit zones for trades.

ADX Color Indicator Table

The general specifications of the ADX Color Indicator are shown in the table below:

Indicator Overview

The ADX Color Indicator calculates trend strength, regardless of trend direction.

This trading tool is presents data via histogram bars and colors as follows:

• Green bars: Indicate bullish trend strength;
• Red bars: Indicate bearish trend strength;
• Gray bars: Indicate a sideways or non-trending market.

Uptrend Conditions

On the chart of the AUD/USD currency pair, green histogram bars begin to appear and grow in length, signaling a strengthening bullish trend.

This condition is often accompanied by the formation of higher highs and higher lows in the price chart, reflecting buying pressure.

Downtrend Conditions

The chart below displays the CAD/JPY currency pair on a 5-minute timeframe.

The emergence of red histogram bars with increasing length shows a strengthening bearish trend, providing a valid zone for Sell trades.

ADX Color Indicator Settings

The settings panel of the ADX Color Indicator is shown in the image below:

• Red: Red color;
• Lime: Light green color;
• Gray: Gray color;
• Gray: Gray color (repeated for neutral state).

Conclusion

The ADX Color Indicator is an updated version of the classic ADX, simplifying technical analysis by displaying trend strength through colored bars.

By identifying bullish, bearish, and sideways trends, it helps traders pinpoint entry and exit zones more clearly.