Forex trading strategy #19 (Egudu simple 4 tools trading)
Submitted by Edward Revy on December 17, 2007 - 13:50.
This Forex strategy was submitted by Egudu.
ok guys, here the strategy:
any currency
1hr,
7EMA(blue)
21EMA(red)
ADX(14)
MACD(12,26,9)
enter long once the 7EMA crosses 21EMA up and the ADX has passed it's 25 or 20mark and the MACD is trending up.the other way round is for short position. Note only enter a position once the ADX has passed it's 25mark.
Exit: exit any position once the 7EMA crosses the 21EMA. Also, the MACD should be looked at before entering a trade, when it's consolidating, you should stay away from the trade.
l am egudu.
Egudu,
Thank you from all our users and web team! Your contribution is greatly appreciated!
Edward Revy
http://forex-strategies-revealed.com/
Hi,
My advance apologies as i'm still new to forex. I would like make things a bit more clear.
long :- 7EMA crosses 21EMA up , ADX passed 20 /25 mark upwards , MACD is trending upwards.
short :- 7EMA crosses 21EMA down, ADX passed 20/25 mark downwards , MACD is trending down.
Is this correct? cause i'm a bit confused about the ADX part.
Thanks
Laurent
Hi Laurent,
Right, except for ADX.
ADX indicator doesn't show direction of the trend, but rather suggests about its strength. Therefore, if ADX line is above 20 or 25 mark, we say it is a clear and strong trend (either up or down). When ADX is below 20 mark there is no clear trend in place.
So, for short entries we need 7 EMA to cross 21 EMA downwards, MACD to be sloping down and ADX to be above 20 or 25 mark. (Typically we use 20 mark).
Long entry - you got it right.
Regards,
Edward
HI Edward,
Many thanks..
Laurent
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