FREE FOREX STRATEGIES

Scalping ideas (ADX and Bollinger bands)


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.


Read entire post >>>


 


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

Thanks Edward
I am new to forex and still learning on a demo account.Could you suggest any very simple strategy for EUR/US$ which is tried and tested by yourself and I try on my demo account and gain my confidence in my trading
regards
Sadaqat

Hi SADAQAT,

I don't know. I think that's a question to IG Index company.

Regards,
Edward

Could you tell me how to do the two settings of Bollinger Band I.E.
BB(20,1)
BB(20,2)
on the I.G.Index Trading Platform.
Awaiting your reply soon.
Thank you EDWARD
From SADAQAT

I've found that ADX direction is more important than level. Basically a rising ADX indicates increasing trend strength. Some of the best trades are when ADX rises sharply from below 15. If you wait until 20-25, the move will frequently be over by then.
Exception: One very important signal is when the ADX level has risen to a level above the DMI (D+,D- lines). The higher ADX is above both DMI lines, the more likely the trend will end soon. Many times a reversal is coming, but sometimes just consolidation.

thanks for ur help

Thank you for your patience, didi.
As much as I feel guilty about this delay, I'm overloaded with the work recent days which leaves very little time to do other things.
Anyway, here it goes finally :)

BB scalping ideas Forex

There are two BBands on the chart:
Bbands (Period 20, deviation 1)
Bbands (Period 20, deviation 2)

When price stays inside BB (20, 1), there is no clear trend, taking trades inside dev1 lines is risky.
Once price gets outside dev1 lines (dotted purple lines) - there is an indication of a some trend starting.
While price stays in between dev1 line and dev2 line of Bbands - there is a good trend in place. You can opt to hold onto your trade until it remains inside this trending area.

However, when price hits dev2 line and closes(!) outside it AND the trade has got some positive pips - it is time to either lock the profits, or bring in a trailing stop right behind the most recent candle and chase it with each new candle.

That's the idea, which helps to classify market behavior into phases.

Best regards,
Edward

hello edward.pls i'm still awaiting ur reply as to the question regarding bollinger band setting 20,2.thanks

Hi didi,

I will, I'd get to it on weekend.
Thank you.

Regards,
Edward

hi edwards,pls could u explain futher how to read d bollinger band signal if possible with a visual aid.thanks

Thank you Thomas. Appreciate the Info

The blue is ADX. Green is +DI, red is -DI.
Blue ADX line should be above 20.

Thomas

Andreas. Thank you for your advise. I put ADX 14 in place in the 5 Min chart. I see three lines Blue at the top , green in the middle and red at the bottom, Which line must be above 20 to indicate strength.

I started looking for some good entries to suggest, but then realised, they all can be found in Simple strategies block.
Just compare different entries there, I'm sure, you'll find plenty of good ideas and I'll save some time typing :)

Thomas

Thanks Andreas, for these advice, i am still a baby trader and i do have problems using bollinger bands in the lower time frame to take entries after identifying the trend in the larger time frame.

can you please advice on other INDICATORS and the SETTINGS that can be used effectively for picking entries in the lower time frame after identifying the trend in the larger time frame.

i like using 1hr or 4hr to identify and 15min to take entries.


 

Post new comment

CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
Image CAPTCHA
Enter the characters shown in the image without spaces.