The ADX (Average Directional Movement Index) is a built-in MetaTrader 4 trend indicator that gauges trend strength — how strong a move is, not which direction it's going. It plots three lines: ADX for strength, plus +DI and -DI for direction. As a rough guide, ADX above ~25 points to a trending market and below ~20 to a ranging one.
How to add the ADX in MT4
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Open the indicator
In MT4, click
Insert ▸ Indicators ▸ Trend ▸ Average Directional Movement Index. -
Set the period
Leave the period at the default 14 or adjust it. A longer period reacts more slowly; a shorter one is more sensitive.
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Click OK
The indicator plots in a separate window below your chart, showing three lines: ADX, +DI and -DI.
How to read the ADX
- Strength, not direction — the ADX line tells you how strong the trend is. A rising ADX means the trend is strengthening, whether price is going up or down; it never tells you which way to trade.
- Trending vs ranging — as a common guideline, ADX above ~25 suggests a trending market and below ~20 suggests a range. These are rules of thumb, not hard thresholds.
- +DI and -DI give direction — when +DI is above -DI, recent movement has been upward; when -DI is above +DI, downward. Pair the direction lines with the ADX strength reading.
Limitations
The ADX only describes how strong a trend is — it doesn't predict price and it lags, because it's built from past prices. A high ADX confirms a strong move but says nothing about whether to buy or sell, and it can stay elevated well after a trend has matured. Treat the ADX as one input among several, always with a stop loss, and test it on a demo. No indicator or setting guarantees profit. Nothing here is financial advice, and most retail traders lose money.
Test the ADX on a free demo
Add the ADX and other indicators to a free MT4 demo and watch how trend strength behaves in different markets before going live.
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Related
See the best MT4 indicators guide. Other indicators: MACD and Moving Average.
Frequently asked questions
What is the ADX indicator?
The Average Directional Movement Index (ADX) is a trend indicator that measures how strong a trend is — not which direction it is going. It is plotted with two companion lines, +DI and -DI, which show direction. A rising ADX means the current trend is strengthening, whether price is going up or down.
How do I add the ADX in MT4?
Click Insert ▸ Indicators ▸ Trend ▸ Average Directional Movement Index, leave the period at the default 14 (or change it), and click OK. The ADX appears in a sub-window beneath the chart with three lines: ADX, +DI and -DI.
What does a high ADX mean?
A higher ADX means a stronger trend. As a common guideline, ADX above roughly 25 suggests a trending market and below about 20 suggests a ranging (sideways) market. Because ADX measures strength only, a high reading does not tell you whether to buy or sell — you read direction from the +DI and -DI lines.
What is the difference between ADX, +DI and -DI?
ADX measures trend strength. +DI and -DI measure direction: +DI tracks upward movement and -DI tracks downward movement. When +DI is above -DI, recent movement has been upward; when -DI is above +DI, it has been downward. ADX itself stays the same regardless of direction.
Is the ADX a reliable buy/sell signal?
No indicator is a reliable signal on its own. The ADX describes trend strength — it does not predict price or guarantee an outcome, and it tends to lag because it is based on past prices. Use it alongside direction and risk management, test it on a demo first, and remember most retail traders lose money. None of this is financial advice.
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