ADX Looks terrible in MT4 | Forex Factory

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ADX Looks terrible in MT4

  • #1
  • First Post: May 17, 2020 3:47pm May 17, 2020 3:47pm
Hi,

Attached Image (click to enlarge)
Click to Enlarge Name: ADX-MT4.gif Size: 104 KB


Am I missing something about the stock ADX in MT4? In Tradingview the ADX displays the trend whereas in MT it seems to just spaz out. Can anyone using the ADX in MT4 help me out?

Thanks.
  • #2
  • May 17, 2020 3:49pm May 17, 2020 3:49pm
Quoting Grish
Hi, {image} Am I missing something about the stock ADX in MT4? In Tradingview the ADX displays the trend whereas in MT it seems to just spaz out. Can anyone using the ADX in MT4 help me out? Thanks.
Use Wilders ADX
  • #3
  • May 17, 2020 3:56pm May 17, 2020 3:56pm
Thanks! That did the trick. Much obliged.

I've uploaded a screenshot for future reference in case anyone else has a similar question.

Attached Image (click to enlarge)
Click to Enlarge Name: ADX-Wilders.gif Size: 64 KB
  • #4
  • May 17, 2020 4:19pm May 17, 2020 4:19pm
In the screenshot below, the plot in the first subwindow is MT4's native Average Directional Movement Index. The second subwindow is a third party indicator that I found here using Google. As can be seen, both generate identical plots. It's a long time since I looked at MT4's ADX, but I'm fairly certain the calculation remained faithful to Welles Wilder's original formula (as described here).

Your TV version appears to have some kind of additional smoothing applied. However, as I don't use TV I can't check its calculation.

Note that the smoothing function that Wilder used in his indicators (it's the same in RSI, for example) involves the value of the indicator on the previous candle. Hence the values depend on how large your data history is. However, if the history is large enough (e.g. > 200 candles) then the values are usually accurate to within 4 decimal places. This is further explained in the link above. It doesn't appear to be the cause of your issue, but imo it's worth knowing.
Attached Image (click to enlarge)
Click to Enlarge Name: PPI 1129.png Size: 44 KB
  • #5
  • May 17, 2020 4:49pm May 17, 2020 4:49pm
Thanks for the info Hanover.

In Trading View I used the first indicator that popped up when I typed "Average Directional..."

The Mt4 one I found using Google, it's this one https://forex-station.com/app.php/attach/file/3314212

I'm looking for the ADX to be a filter on Divergence trades, so if there is smoothing applied I'm okay with that as it looks to be doing what I want it to do. I need to go through more charts to be certain. However, the MT4 stock one wasn't helping in that regard.
  • #6
  • Last Post: May 17, 2020 4:53pm May 17, 2020 4:53pm
Quoting Grish
Thanks for the info Hanover. In Trading View I used the first indicator that popped up when I typed "Average Directional..." The Mt4 one I found using Google, it's this one https://forex-station.com/app.php/attach/file/3314212 I'm looking for the ADX to be a filter on Divergence trades, so if there is smoothing applied I'm okay with that as it looks to be doing what I want it to do. I need to go through more charts to be certain. However, the MT4 stock one wasn't helping in that regard.
Understood. I'm familiar with the original ADX, as created by Wilder, which typically produces a 'jagged' looking plot. I wasn't aware that a new version had been developed using a different calculation. I agree that the new one is smoother and more useful.
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