Best ADX Setting for H4 Gold Chart

How to Add ADX XAUUSD Indicators on MetaTrader 4 XAUUSD Charts

Step 1: Open MetaTrader 4 Software Navigator Window

Open MetaTrader 4 Navigator panel as shown below - Navigate to 'View' menu (then click it) & then choose the 'Navigator' window panel (click), or From the Standard Tool bar click the 'Navigator' button or use key-board shortcut keys 'Ctrl +N'

On MetaTrader 4 Navigator window, select "Technical Indicators", (DoubleClick)

Best ADX Settings for 1 Hour XAUUSD Chart - Best ADX Settings for 4 Hour Gold Chart

Adding ADX MT4 Indicator

Expand the menu by clicking the expand button marker (+) or double click the 'indicators' menu, after this the button will appear as (-) and will now display a list as shown below - select the ADX indicator from this list of gold indicators so as to add the ADX indicator on the xauusd chart.

Best ADX Settings for 1 Hour XAUUSD Chart - Best ADX Settings for 4 Hour Gold Chart

How to Add Custom ADX XAUUSD Indicator to MT4

If the ZDX gold technical indicator you want to add is a custom indicator - for example if the ADX technical indicator you want to add is a custom ADX indicator you will need to first add this custom ADX indicator on MetaTrader 4 platform & then compile custom ADX indicator so that the newly added ADX custom MT4 indicator pops up on the list of custom indicators in MetaTrader 4 software.

To learn how to install ADX indicators on MT4, how to add ADX indicator window to MT4 and how to add ADX custom MT4 indicator on MT4 - How to add custom ADX gold Indicator in MetaTrader 4.

ADX XAUUSD Technical Indicator Explained

ADX XAUUSD Technical Analysis and ADX Gold Signals

ADX indicator is a momentum indicator used to figure out the strength of xauusd price trend: ADX indicator is derived from the DMI - Directional Movement Index which has 2 lines.

+DI - Positive Directional Movement Index

–DI - Negative Directional Movement Index

ADX is calculated by subtracting these 2 values & applying a smoothing function.

Best ADX Settings for 1 Hour XAUUSD Chart - Best ADX Settings for 4 Hour Gold Chart

The ADX is not a directional gold technical indicator but a measure of the strength of the xauusd price trend which has a scale of Zero to Hundred.

Higher the ADX technical indicator value the stronger the xauusd price trend.

ADX value of below 20 indicates that the xauusd price is not trending but heading in a range.

ADX value of above 20 confirms a buy or sell signal & indicates a new xauusd price trend is emerging.

Values above 30 indicates a strong xauusd price trend.

When ADX turns down from above 30, it signals that the current xauusd price trend is losing momentum.

Directional Movement Index Indicator

Since the ADX alone is a directionless indicator it's combined with the DMI index to figure out the direction of the xauusd price trend.

Best ADX Settings for Gold Swing Trading - Best ADX Setting for Scalping Gold Trading

ADX and DMI Index

Best ADX Settings for Gold Swing Trading - Best ADX Setting for Scalping Gold Trading

When the ADX is combined with DMI index a trader can figure out the direction of the xauusd price trend and then use the this ADX indicator to determine the momentum of the prevailing xauusd price trend direction.

ADX Gold Technical Analysis & How to Generate Trading Signals

Buy Gold Signal

A buy signal is generated when +DI is above –DI, & the ADX indicator is above 20

The Exit xauusd signal is generated when the ADX indicator turns down from above 30.

Best ADX Settings for Gold Swing Trading - Best ADX Setting for Scalping Gold Trading

Sell XAUUSD Signal

A sell signal is generated when the –DI is above +DI, and the ADX indicator is above 20

The Exit xauusd signal is generated when the ADX indicator turns down from above 30.

Best ADX Settings for Gold Swing Trading - Best ADX Setting for Scalping Gold Trading