Scalping ideas (ADX and Bollinger bands)
Submitted by Edward Revy on April 22, 2007 - 10:24.
Scalping with the help of ADX:
To scalp effectively with minimum time spent, Forex scalpers need to know when the market is trending well and when there is nothing to wait for.
To find out about the strength of the market trend use ADX (Average Directional Index) indicator.
ADX does not show the direction of a current trend, it only shows the strength of the trend. Reading below 20 indicates a weak trend, reading just above 20 – gaining new strength trend and reading above 40 – very strong trend.
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adx for medoes not work. sometimes i found adx>20 and candles are horizontal,sometimes i see adx<17 and market is volatil, it is crazy is not it? Looks like the creator of it was not in perfect mind
Hi Genesis,
You'll simply need to continue learning, then you'll see that there is no such thing as a winning formula for EURUSD or any other pair. To trade successfully you simply have to have a good knowledge base about the market and develop a trading system to trade by the rules.
Bollinger bands alone, or ADX, or RSI etc cannot provide a consistently winning solution, you're right about that (and that's why we call it "trading ideas" not systems). Keep on studying and testing other strategies we have here. Good luck!
Regards,
Edward
Im new in forex, but i want to be sucessful trader.please advise what formula is best suited for Eur/USD pair.Im acquainted with parabolic SAR, Bolinger Band, Stochastics, and ADX. often times bollinger Bands causes my losses..pls advise. Thank you.
Genesis
I've seen a great srticle here about ADX indicator and how to interpret it.
Thomas
ADX.looks confusing to me. which of the lines give the signal because I see 3 lines interwoven here.
umar.
When using Adx you Should see that you enter your trade when the indicator trending towards the 40 not when it is on the 40
You can't call it a system, rather a trading idea/approach. Therefore, without stops, TP levels etc it can't have performance stats.
Thomas
for how long have u been using this system and what is the accuracy?
Sure, here is the screenshot with Bollinger bands (20, 2)
When this happen, a trend will either make a pullback or reverse.
Regards,
Edward
Hi,
Can someone clarify on the use of bolinger band?I don't quite understand this portion "bottoms and tops made outside the Bollinger bands change to bottoms and tops made later inside the Bollinger bands suggest upcoming trend reversal".
Probably can show an exampl. Thank you
could you please provide an illustration as well. that would be very helpful. thanks
a picture would be fine
If you are interested in trading with Bollinger Bands I ran into a free website by John Bollinger for the forex market, www.BBForex.com. In the lists section they screen for stocks in BB patterns, including a volatility breakout. The advanced flash charts with a choice of indicators are good too.
The ADX indicator can give you much help in times of state and other trends.
It is very useful
Sure, Sadaqat
try this one:
http://forex-strategies-revealed.com/advanced/trendlines-breakout
if you find it difficult for you as a beginner, then you may start with an indicator based simple system:
http://forex-strategies-revealed.com/trading-strategy-basicbalanced
Regards,
Edward
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