ADX Channel is an indicator that plots the channel depending on the values of the ADX (Average Directional Movement Index) indicator. The resulting channel is a little similar to the Envelopes, but its lines depend on the market volatility. The sell trade is usually executed fast when the price touches and bounces from the upper line of the channel, buy - from the lower. It is recommended to trade when there is no significant news. The recommended timeframes: M5 - H1. The indicator is not designed for trading on D1 and higher timeframes. The dotted lines depend on the values of +DI and -DI of the ADX indicator.
- Period ADX - the ADX indicator period for plotting the channel;
- Strength - strength, the greater this value the stronger the channel depends on the ADX values;
- Strength2 - the strength of the additional channels denoted by dotted lines (they depend on the values of +DI and -DI);
- History - the number of bars to look back to plot the lines.