Thread: ADX CROSS - VertexFX Indicator

concept behind the ADX Crosses indicator is that the +DI and -DI are representatives of the downtrend and uptrend components of the price respectively. When these components cross each other decisively we can safely assume that the market is moving (and will continue to move) in the direction of the dominant trend.
In trending markets, the +DI and -DI move in opposite directions. When +DI starts moving upwards steadily, the -DI component starts falling steadily. When they crossover, it is a clear indication that the trend has sustained and will continue to do so.
In the first step we calculate the ADX, +DI and the -DI components for the ADX_PERIOD bars.
If the previous +DI is above the previous -DI, and the current +DI is below the current -DI, a BUY signal is triggered. If the previous +DI is below the previous -DI, and the current +DI is above the current -DI, a SELL signal is triggered.
BUY - Enter BUY trade when a BUY arrow is displayed on the previous candle. Avoid opening BUY trade if current candle has opened gap up, or if price has deviated too far from the previous candle closing price.
SELL - Enter SELL trade when a SELL arrow is displayed on the previous candle. Avoid opening SELL trade if current candle has opened gap down, or if price has deviated too far from the previous candle closing price.

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