ADX Histogram Indicator MT4

ADX Histogram Indicator for MetaTrader 4

The ADX Histogram Indicator for MetaTrader 4 blends the Average Directional Index (ADX) with the Directional Movement Index (DMI), offering traders a clearer insight into both trend direction and momentum. This combined oscillator uses color-coded histogram bars: green for bullish trends and red for bearish momentum.

Indicator Table

Overview of the Indicator

Although the ADX line requires in-depth calculation, its interpretation is straightforward: the stronger the price trend, the higher the ADX value. The DMI Histogram visualizes the strength differential between +DI and -DI lines, making it easier to detect market bias. This combination serves as a powerful technical analysis tool for Forex and other financial markets.

Indicator in an Uptrend

On the GBP/JPY chart, as the histogram transitions to green and crosses the zero-line upwards, a buy signal is typically triggered. When the bars return to red, it may signal an appropriate time to exit the position.

Indicator in a Downtrend

In the example below using the CAD/JPY 1-hour chart, the histogram’s color change from green to red suggests the onset of a potential bearish trend. Reverting back to green signals a possible closure for sell trades.

Indicator Settings

• Chart Theme: Adjusts the visual theme or background of the chart
• Ma Period: Sets the lookback period for the ADX calculation, default is 14

Conclusion

The ADX Histogram Indicator for MetaTrader 4 is a reliable choice for identifying and confirming market direction. Widely used by technical traders, it offers deeper insight by fusing ADX and DMI into one visual representation. This indicator becomes even more effective when used across multiple timeframes, helping traders refine their entries and exits based on trend strength.