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Forex trading strategy #2 (Parabolic SAR + ADX)

The two indicators we are going to talk about here are found to be very well working when used side by side. This Forex trading system is an another simple discovery; and hundreds of such discoveries can be made when traders are there to learn and experiment.

Any currency pair and time frame can be used.
Indicators: Parabolic SAR default settings (0.02, 0.2), ADX 50 (with +DI, -DI lines)


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It works on EUR/JPY well but on other pairs the result is not ok. Please does it mean that this strategy is for EUR/JPY only

If 21 EMA is to be added, then yes, it is suggested to check daily and 4 hour charts prior to trading.

From my observations, current strategy "likes" smoothly trending pairs. Therefore all x/JPY combination should work well; and again only further testing can be advised for other currency pairs.

Regards,
Edward.

It's better to use longer EMA for entry filter. EMA100 is a good one.
Regards
skltrader

how do I calculate the +D1 and -D1

(+DI) Positive Directional Momentum Indicator and (-DI) Negative Directional Momentum Indicator - both are a part of ADX and are set when ADX indicator is applied to charts.

The formula for +DI and -DI is not known to me. I'm sorry.
As a solution, you may register a demo account with another broker which has ADX with +DI -DI and use signals from there.
(The screenshot to the strategy is made on OANDA's charts)

Regards,
Edward

ADX 9-20-40 /
period = 9 / horizontal line at 20 / horizontal line at 40 /
all time charts /
ADX upper 20 = TREND /
ADX upper 40 = STRONG TREND /
ADX below 20 = NO TREND /
when ADX is crossing ADXR (the signal) = ENTRY/EXIT POINT (ADX up = buy, ADX down = sell)

USE EMA (63 DAYS) with Parabolic SAR and with ADX (14) and earn 50,000 $ a month .... U BET !!!!!!!!!!!!!!!

When these THREE gives same Signal then TRADE ,,,,

UNDERSTAND.......

Now Pray for me ,,, because I m a millianore but i have to find my Dream Girl because u cant buy ur Dream Girl ,, ok

BYE BYEE

Edward:

I have a question about ADX. This particular strategy requires ADX (50). I am using Metatrader 4 and my default is 14 periods. Do I change the 14 to 50? Is 50 the best setting for all time periods? If not, what do you recommend for the Hourly and 4 Hour charts? Thanks.

Lynn