The Average Directional Index (ADX) is considered to be a trend indicator. On the MT4 platform, this indicator is listed under the Trend Indicators. When looking at the properties of the ADX, the Parameters tab setting contains the period of time being looked at & the color & style of the line that represents the strength of trend. The recommended period we suggest is 14 (looking at the last 14 candles) and apply to the “Close.” Since we are using this with trends, we will primarily being referring to a […]

Hedging is an investment strategy that has a purpose of protecting ourselves against a loss in another investment. A trade is made with the intent of making money. However, if it doesn’t work out, I am protecting myself by making another trade that can profit from my first trade not working out. It is like buying insurance on a car. If I experience a loss on my car, I have made an investment in the insurance to help offset the loss. The hedge offsets the loss but it also offsets […]