Forex trading strategy #10 (Egudu EMA+ADX Strategy)

Hi,
When someone wants to write an EA for a system, what does that mean?

Claude

UPDATE:
Hi, i am Egudu and this is a review to the system a posted some time ago. Now i have added some other indicators to it: 5ema(close),6 ema(open), 55ema(close) and center of gravity indicator(C.G)
Center of Gravity 1.mq4
you enter long when the 5ema and has cross the 6ema and all are above the 55ema and the C.G should also have cross up in the same direction. The opposite should be for a sell. Now depending on the time frame you chose to use, that would determine your stop loss and take profit. for 15mins time frame you go for 15-20pips for each trade as profit. Note:the 5ema must cross the 6ema above the 55ema for a valid buy signal. The opposite is true for a sell signal. An osma indicator is also added to keep us right.

Hi John,
Waiting for a candle to close is advised.
1 pip difference becomes an alert, while closed candle is a trigger to enter.

Regards,
Edward

Hi

just wondering if you should wait for the candle to close or 1 pip difference is enough?

cheers

john

I have the same concern as Tom's.

Now, my only idea is to look at -DI and +DI lines of ADX. A buy signal occurs when +DI crosses above -DI and a sell signal when +DI moves below -DI.
Then combining it with ADX over 20 I get an idea of both: direction and strength of a trend. Also when ADX gets to 40 and begins to decline that is the case of an ending trend.

Thomas

Dear Egudu,

I would like to know more about the entry rules.

When the 2 moving averages have crossed over according the rules mentioned and the ADX is above 20 BUT is bending down (ie in a downtrend) and doesn't look to be going up but still > 20, does the ADX in this situation still be considered as having satisfied of being over 20?

Should I only consider the ADX to be good enough only when it is > 20 AND trending up?

Please let me know. Your reply would be very much appreciated. Thank you.

Tom
Malaysia

Hi Jatin,

Moving averages simply smooth out data presented on the chart. Since price has High, Low, Open and Close values, there are 4 options/4 price values for MAs to be calculated upon. The most used price value is "Close", because it represents the final result/agreement between buyers and sellers at any given time.

Other options (price High, Low and Open) are used by traders in their trading experiments in order to find the best representation for price activity seen on Forex charts.

The ultimate goal for any trading system is to find such set of tools, which will help you to see and read price moves successfully.

In current strategy the factor that one EMA is based on Open and another on Close helps to pull two moving averages further apart, so they do not provide unnecessary crosses for the strategy which entries rely on EMA's crosses.

Regards,
Edward

Dear Edward, thanx for this highly valued website. i am new in forex so i dont have a full bucket of knowledge yet but i am sure as i start to read your website i will fill my bucket compeletly. so my qaution is what is function of close Or open in EMA ? how close and open function effect EMA'S.
very very thanx in advance, jatin

Sure, it would be helpful.

Regards,
Edward

Pls how about using EMA 20 and 40 both applied to close, to identify trend in the 1hr chart.

Hi,

On MT4 you should go to the menu at the top of the screen, click "Insert" -> "Indicators" -> "Trend" -> Moving average.

If you don't have or see one, then you can always upload your own indicator to the trading platform.

To do so:
1. Close the platform.
2. Go to the folder where you installed MT4.
3. Find the folder "experts". Inside it folder "indicators". Copy your indicator there.

4. Now open a trading platform.
5. Go to "Insert" -> "Indicators" -> "Custom" -> and find your new indicator there.

Download Moving Averages.zip

Regards,
Edward

Hi Edward,
Nice website!!! I've been using for a while and I've find out a lot
of useful things on it and many answers.
could You please tell me how to set up or download EMAs on MT4 cos
cannot see any on it.
Many Thanks.
sorry for my english I am not a native speaker

Hi,

I've added a screenshot above.
While ADX line is above 20 level we consider entries; if it is below 20, we stay out.

Regards,
Edward

olayiwola,
thanks for the system. but how do i know
understand what you mean by ADX14 at 20marks

Thanks

akinkunmi,

Try looking at the top left corner of your charting software, it should state current values of each indicator, including of course EMAs.