Utilize the ADX indicator to pinpoint optimal buying and selling opportunities. The ADX quantifies trend strength, enabling Gunbot to capitalize on powerful uptrends for purchasing and potent downtrends for selling. Gunbot incorporates ADX in conjunction with the Directional Index.
The ADX is a widely used technical analysis instrument that helps traders recognize market trends. It is derived from a series of calculations based on price movement highs and lows over a predetermined time frame. Generally, an ADX value above 25 signifies a robust trend, while a value below 20 implies a weak trend. Combining the ADX with other indicators can validate trading signals and support traders in making well-informed choices.
Working with the ADX Indicator
Conditions for the Buy Method
Purchases are permitted when the ADX value surpasses the 'ADX level' and DI+ exceeds DI-.
Conditions for the Sell Method
Sales are allowed when the ADX value exceeds the 'ADX level' and DI- is greater than DI+.
Using gain protection with this method is optional.
Keep in mind that employing gain protection may result in sell orders beneath your break-even point.
This example illustrates the potential performance of trading with this strategy. Configuration details.
The infographic below demonstrates the triggers for trades using this approach.