Indicator Overview
The adx-candles-indicator for MT4 changes candle colors based on the ADX (Average Directional Index) and its directional components (DI+ and DI-). It provides a quick visual reference to trend strength and direction, which can help traders confirm or filter entries. Rather than reading values from a separate ADX indicator window, traders can immediately see strength-based signals right on the chart.
This indicator is designed for discretionary traders who use trend-following or breakout strategies and want a cleaner chart without relying on too many subwindows.
How to Use It in Practice
In real-world trading, this indicator can be used to:
- Spot when the market is trending with strong momentum (highlighted by colored candles).
- Visually separate strong ADX signals from low-trend/no-trend areas.
- Confirm the strength of a breakout or continuation pattern before entering a trade.
- Adjust trade timing and size based on trend quality indicated by the candle colors.
It’s most helpful when combined with basic price action or support/resistance analysis to avoid false signals in low-ADX conditions.
Parameter Explanations
ADXPeriod
Sets the number of periods used to calculate the ADX and DI+ / DI- values.
ADXSignal_Level
Defines the threshold above which a trend is considered strong enough to color the candles.
ADX_plus_DI_Levels
If true, candle coloring is based on both the ADX strength and the DI+ vs DI- relationship.
ADX_Level_Only
If true, candles are colored only based on whether the ADX value is above the signal level, ignoring DI+ and DI- directions.
DI_Levels_Only
If true, candle coloring is based solely on DI+ and DI- comparison, ignoring the ADX level.
BarWidth
Controls the width of the bar-style candles (if the indicator is used in bar mode).
CandleWidth
Controls the thickness of the displayed candles. Useful for customizing visibility.
