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Forex trading strategy #12 (Arsalan's ADX + MACD)

Submitted by Arsalan, our valued contributor.

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I want to share one strategy which is based on macd and adx.
The strategy is as follows:

Time frame - Daily.

Indicators - Macd (3,10,18)
ADX(18) WITH + DI AND - DI LINES

Buy setup - macd should give buy signal.
+di should be above -di. if +di is below -di and macd gives buy signal then ignore it at that time and wait for + di to go above - di to make a long entry.

Sell setup - macd should give sell signal.
- di should be above +di .if -di is below +di and macd gives sell signal then ignore it at that time and wait for -di to go above +di to make a short entry.

ADX MACD Forex strategy

Stop loss - use it as per your risk appetite.

Exit - use trailing stops to exit because it will allow you to capture maximum profit.

One thing which is important while using this system is that you should trade with proper money management techniques.

Happy trading,

Regards,

Arsalan.

See other strategies by Arsalan:
ADX + EMAs cross system
269 trading strategy (in comments)
System selection technique using ADX



http://forex-strategies-revealed.com/


pls tell me accurate perameter to trade for intraday.

Daily:
Macd (3,10,18)
ADX(18)

Intraday:
same
or
MACD (6, 13, 9)
ADX (14)

Do you recommend the use of this method with the 15, 30, and 1hr charts. Im assuming thats what you mean by intraday, but I just wanted to make sure it was for all of them. I use them in conjunction with RSI too.

Thanks,

Corey

Intra-day refers to charts smaller than 1 day. Yours fit well;
intraday settings will be the same for all 3 frames.

ADX period is 18, can someone please state what period -di and +di should be set to? Also can you please state or provide a link where i can download the ADX indicator (with the -di/+di lines). Thank you.

Isabel

Hi Isabel,

ADX and its -DI +DI should be set to the same value (if it is ADX 18, then di lines should be set to 18 too).

Every trading platform has ADX and DI lines. In MT4 you'll find it under Average Directional Movement Index name.
To get an indicator, please follow the link: http://codebase.mql4.com/280

Regards,
Edward

Hi Edward

I am using FXCM, discover that the ADX does not come with +DI and -DI. CAn I use DMI instead?

Thanks
Edwin

Hi Edwin,

Absolutely. DMI is what you need.

Best regards,
Edward

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