Description of the ADH indicator

The indicator is part of a group of technical analysis assistants, such as the Bollinger band. The implementation of this trading robot was carried out by the famous stock trader Wells Wilder. Unfortunately, the trend is not determined by the ADX indicator from the beginning. Mainly, entry into the market takes place in the middle of a strong trend.

 

If the Din line lies below the Din line, and the ADX is growing up, we need to open the deal for sale. Stop Loss is setting just above the recent price high.

 

The indicator "ADX" determines whether the price is outside the range of the previous day. Moving the price beyond the upper limit alerts the trader to the dominance of bulls in the market and signals the need to buy. The opposite situation is observed when the minimum of the current day goes beyond the previous one. In this case, open sales items

 

Description of the ADH indicator

 

 

The moving average has three lines: Din, -Din, ADX

 

 

 

Din, - Din - smoothed lines of the direction

 

ADC - middle direction indicator

 

 

 

As the trend increases, the distance between the Din and -Din lines increases and the ADX line begins to grow. Accordingly, when the trend is reversed, the ADC line falls.

 

We will carry out a detailed description of the ADX indicator in the prism of necessary actions.

 

 

 

In the case where all factors have coincided and the ADX line is up and the Din line is above the -Din line, it is necessary to set up Forex purchase warrants. Stop Loss is set just below the recent low.

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