Forex trading strategy #14 (ADX Power)

Hi Edward

Noted with thanks.

Regards

Edwin

Hi Edwin,

By default EMA is applied to (you can also read "calculated based on") the Close of the price bars.
But you also have an option to apply EMA to Open or even to High or Low.

ADX is not necessarily should be pointing upwards, but it is always better when it does, because it confirms that the trend accelerates.

Best regards,
Edward

Hi

I am new to forex and would like to ask 1 question, what does it mean by for example, Open and Close as stated above for EMAs?

Btw, another question, understand that we should enter only when ADX is above 25 but must it be pointing upwards before we enter the trade?

Thanks
Edwin

Hello Nariman,

Thanks for this simple strategy. It looks good and positive to me. I am going to try it as it is. I will soon post results in the coming days.

Well, when the number of ADX is getting smaller, its strength is bigger so no need to determine the strength of market..
I have forgotten to write. It was Ema 5 (close) and Ema 6 (open)
For buy, ADX crosses and Emas cross....
For sell, just do it in an opposite way of buying
QQE

To QQE

We don't have many scalping systems. Could you please submit your entire system with graphics to be displayed in the scalping system category?

Thanks for your help.

Marie

I use ADX (3) with EMA 5 and EMA 6 (open) on the chart of both M30 and M15 for scalping.

QQE

Hi Nariman,

Does this techinque need you to be constantly in front of your computer. How do you suggest me we catch the trend

Hi Nariman,
I am just curious - how did you figure out such unusual numbers as EMA9 and EMA26? Why not 10 and 20 or anything else?
Indrek

Hi Nariman,
Great simple strategy,very well thought out! In your opinion how important is it to have the ADX line between DI+ and DI- to enter a trade? Do you have any exceptions to that rule or do you follow it strictly and pass on any trade where the ADX is not between the + or - lines?
Thank you very much for presenting this to us, Phil

Hi Marie,

SL really depends on your personal money management technique, I normally take it as a certain % of my overall portfolio size.

In terms of Entry point, if you look at the screenshots, its exactly at the Open of Next Bar when the DI+ has crossed 25 and ADX is > 20 (of course the EMA9 should already have crossed EMA26). In screenshot you might see a couple of Arrows pointing UP or DOWN, these are my entry and exit points in these particular examples.

Thanks Nariman

What stops do you use? Exactly where do you enter - do you switch to smaller time frames, wait for the 4 hour bar to close, or enter as the last condition is met within the current 4 hour bar?

Marie