Migrating strategy

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Hello,

‌

W‌e manage a mutual fund and we're tryng to port our strategy to MT5. We cannot find a DMI indicator nor a way to choose beetween different kind of candles (3 minutes, 3 hours...). We are trying to put part of our fund in the signal system but is turning impossible. Can somebody help us?

‌

G‌reetings,

M‌iguel

 

DMI ... ADX?

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Something Interesting

Sergey Golubev, 2016.08.10 17:44

Average Directional Movement Index (ADX)
Developed by J. Welles Wilder

The ADX is a momentum indicator used to determine the strength of a price trend; it is derived from the DMI –Directional Movement Index which has two indicators 

  • +DI- Positive Directional indicator
  • –DI - Negative Directional Indicator

ADX is calculated by subtracting these two values and applying a smoothing function, example a function of ten to come up with a 10 period ADX. 

The ADX is not a directional indicator but a measure of the strength of the trend. The ADX has a scale of Zero -100. 

  • The higher the ADX value the stronger the trend.
  • ADX value below 20 indicates that the market is not trending but moving in a range. 
  • ADX value above 20 confirms a buy or sell signal and indicates a new trend is emerging.
  • ADX value above 30 signifies a strong trending market. 
  • When ADX value turns down from above 30, it signifies that the current trend is losing momentum.

ADX indicator combined with DMI- Directional Movement Index 

  • Since the ADX alone is a directionless indicator it is combined with the DMI index to determine the direction of the currency pair.
  • When the ADX is combined with DMI index a trader can determine the direction of the trend and then use the ADX to determine the momentum of the forex trend.


Technical Analysis of ADX indicator

Buy Signal

  • A buy signal is generated when the +DI is above –DI, and the ADX is above 20 
  • The Exit signal is generated when the ADX turns down from above 30.
Sell Signal
  • A short signal is generated when the –DI is above +DI, and the ADX is above 20 
  • The Exit signal is generated when the ADX turns down from above 30.

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ADX - Average Directional Index
This lesson describes the ADX with the DI+ and DI- Directional Indicators, and also shows how they are commonly use



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As to timeframes (I am not sure that I understood your question in correct way sorry):

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The key article about MT5: MetaTrader 5 - More Than You Can Imagine! 
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