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Combining ADX, DMI, CCI, and Fractals for Trade Signals

Article MQL5 code base

Summary

This indicator combines ADX, directional movement (DMI), the Commodity Channel Index (CCI), and fractal pivots to generate buy and sell alerts. Its configurable inputs include the calculation periods for ADX and CCI, bullish and bearish CCI thresholds, and whether alerts are enabled.

A buy condition requires ADX to rise for two bars, positive DMI to exceed negative DMI, CCI to remain above its bullish threshold for three bars, and a new lower fractal to appear as support. A sell condition reverses these tests: ADX falls for two bars, positive DMI is below negative DMI, CCI stays under its bearish threshold for three bars, and a new upper fractal marks resistance. The document explains the rule logic but provides no market, timeframe, parameter values, backtest, or performance evidence. It therefore describes an indicator setup rather than demonstrating a profitable strategy; users would need to test how its conditions behave in their chosen instrument and data.

Key ideas

  • The indicator combines ADX, DMI, CCI, and fractal pivots to define directional signals.
  • A buy requires rising ADX, positive DMI dominance, sustained bullish CCI, and a new lower fractal.
  • A sell requires falling ADX, negative DMI dominance, sustained bearish CCI, and a new upper fractal.
  • The periods, CCI thresholds, and alert setting are configurable inputs.
  • No backtest or performance evidence is supplied, so the rules need independent evaluation.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.