Hello ! i’m new to forex and i’m using a demo account at the moment , can someone please explain to me why adx on mt4 has 3 lines which is totally different from the one i ve seen here in the education section which only has 1 line. Many thanks
Not sure,
could you provide a screenshot
Maybe the ADX has an integrated Moving Average (just a guess)
ADX looks at the difference between positive and negative directional movement over time and calculates a value between 0 and 100 where lower values indicate non-directional movement (e.g. sideways movement) and higher values indicate a stronger directional movement (where the difference between the average positive and negative directional movement is largest)…
Three additional lines can be displayed depending on the indicator software available to you -
positive and negative Directional Indicators - +DI and -DI
Average Directional Rating - ADXR
ADXR is the average of the ADX today and the ADX e.g. 14 days ago. Therefore, it gives a measure of the amount of directional movement but is less effected by changes and equilibrium points in directional movement.
Its hard to see why anyone would need ADXR, +DI and -DI but its all in J Welles Wilder’s New Concepts in Technical Trading Systems if you need to go deeper into this.
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Thanks for the explanation @tommor
i thought it might be have been something like that, (Averaging)
i have used ADX in the past, it’s not really my thing, it doesn’t do a lot for me.
but this is good to know
You’re welcome Martin.
I find it just raises doubts about trends that look like trends and trends that don’t. For me it seems to raise more questions than it answers but I am biased that way about all indicators.
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@tommor
Mate, i totally agree
I have a philosophy that i use in trading
that being
AN INDICATOR HAS TO PROVE ITSELF TO ME
what i mean is this…
When i started, as everyone did, people tell you
- Pop on an SMA
- whack on a bollinger band
- pop on a MACD
etc
i did,
did it help… HELL NO hehe
so at one point i had a lot of indies on my screen
i said FIRETRUCK THIS
i got rid of them all and i started over (best thing i ever did)
i started with the intention of only using Horizontal lines for support and Resistance and IF POSSIBLE to only use that for trading
i think after that i was told about Fib Levels
i TESTED IT - it proved to work
i also explored the fact that “Psychologically” Maybe i wanted it to work and that’s why it worked
so, i made a rule to myself that i would look at it without bias
Fib still does the job
i tested MA’s for me, it doesn’t cut it
i tested ADX, there was some merit, but not enough for me to fell that i could largely rely on it
at one point i was told VOLUME INDICATOR was dead on accurate, well that died pretty quickly hehe
I LIKE INDICATORS TO PROVE THEIR WORTH TO ME
that way i know i can rely on them
I have over 2000 odd indicators, i regularly go through and test them 1 by 1 (at this point it’s not that i need more, it’s more product knowledge than anything else)
but still I FEEL THE NEED TO HAVE AN INDI OR EA PROVE ITSELF before i rely on it with Live Money
so, i agree with you
Using some indie’s seems to create more confusion and more problems than solutions
be cool
It shows the ADX line and two other lines called “+DI” and “-DI” as well.
Together they constitute the “Directional Movement Indicator”, explained here: DMI Points The Way To Profits
Thanks guys , your replies were very helpful , im taking my time educating myself , i may even take a year education and demo account , i want to make sure i know every little aspect , any tips please
Please publish a screenshot, to better clarify your doubt, market conditions vary minute by minute.
that’s a very intelligent thing to say
Good on you for deciding that, Most newbies don’t
Thank you. I appreciate it. Although im so tempted to open real account as im doing very well on the demo one however im keeping my emotions in check and im determined to start trading real money only when im pro. Doesn’t matter how long that will take. My name is ali by the way. Nice to meet you all.
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And you, Ali. (I’m Charlie, of course.)
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Yes, tommor nailed it! The middle is the main line and the additional
2 are DL+ and DL-.
Looking at all those indicators is going to make you blind. ! !
OH, and Do Not trade 1.0 lot sizes when you start !! Try Minimum 0.01 / 0.05 or you gonna get wiped out very quickly.
Roger that 
for the indicators , i’m putting them all there because im just getting to know them and i want to know how reliable they are compared to each others. how many indicators you use at same time and which ones ? a lot to learn
Thank you for the explanation. it’s safe to say that i have a clear picture now!
Sometimes less is Better. 
Yep , just finished reading that , i find it useful , thanks for the link