Skip to content
All library documents

Comparative ADX for Gauging Currency Pair Trend Strength

Article MQL5 code base
Read the original

Summary

The Comparative ADX indicator compares the ADX value of the charted instrument with the average ADX of five major currency pairs: EUR/USD, GBP/USD, AUD/USD, USD/JPY, and USD/CAD. USD/CHF is excluded because the description says it has historically moved in reverse relative to EUR/USD. The indicator is intended to show whether the current instrument's trend strength is elevated relative to this currency basket.

Users set the ADX calculation period and a threshold level. A ratio above the stated level of 1.0 is treated as indicating a stable trend. The method is a relative trend-strength comparison; it does not predict direction or specify entry, exit, or risk rules. The description notes that initial use or a timeframe change may require downloading history for all the symbols, and that the line may not recalculate until a tick arrives or the timeframe is switched. No performance results or validation are provided.

Key ideas

  • The indicator compares current-symbol ADX with the mean ADX of five currency pairs.
  • USD/CHF is omitted because the description characterizes it as historically reversing relative to EUR/USD.
  • The calculation period and threshold are adjustable inputs.
  • A value above 1.0 is described as a stable relative trend condition.
  • The indicator measures trend strength rather than trend direction and provides no tested trading rules.

Tags

ForexTechnical indicatorsTrend following

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