ADX Trend Trading Forex Strategy 👍

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Trend trading with the ADX. PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE Average Directional Index Trend Trading Forex Strategy This strategy involving the average directional index is for getting on the end of trades and I like it. We know that taking trades in the direction of a prevailing strong trend tends to reduce risk while increasing profit potential. What you need for this is an ADX and put on two exponential moving average one of which is a 40-period and the other is a 20-period ema. We are initially looking for a filter to establish trends – most of the times if the ADX is above 30 that is indicating that we are in a trend. Once we see that we’re looking for price to come back and touch the 20 period EMA and then we go long (if we’re in an uptrend). The good thing about this trading strategy is that our stop loss is at the 40 period moving average so its a very defined strategy.

Using The ADX Indicator To Find And Trade Forex Trends:


J00709405282 5 says:

Wonderful! Thanks!

alejandro rodriguez says:

Thanks Mark

redcentredoggies says:

Thanks Mark.

Thomas Immler says:

cool interessant

Joshua Pace says:

Hey, loving your videos! I think this could be improved by adding DI+ and DI- to the ADX indicator… Use the exact same strategy as you outlined, but only take the long trade if DI+ is ALSO over 30 (I use 25, actually), or the short if DI- is over 30… Cheers

krishnazee061 says:

nice vdo as ohters of u. how to filter entries in same strategy.?

Karl Usher says:

I think perhaps we have come across the same strategy online.

I tested it on 10p spread bets for 6 months on all usd and gbp pairs. It requires patience waiting for entries, but is worth the wait.

I edited the strategy a tad:- changed EMAs to 13, 33, and 39. If PA hits the 33, I switch down to a 1hr chart and wait for the candle to hit the 39. Why those numbers, well illuminati numbers seem to provide good MAs, who'd have thought it…
I added a 144 SMA for trend direction, switched out the standard adr for the ADXR indicator, added a Demand Index by James Sibbet, and a 12,26,9 MACD histogram.

Rules are simple enough.

Buy only when PA is above 144, sell only when PA is below 144.

Buy when 13 crosses above 33/39, sell when 13 crosses below 33/39.

MACD histo entry is self explanatory.

Buy when Demand index is above 5000, sell when below -5000.

ADXR: Buy when ADX is above 30 and +Dl is above 21. Sell when ADX is above 30 and -Dl is above 21.

I also like having an 5 day ADR showing above 30, but it's not essential, as well as a Supply/Demand zone indicator to give me a heads up on potential entries/exits…

You can trade this strategy with just an adr and MAs, but my additions seem to cut out entering too early – useful for those who don't want to risk large draw downs when using the daily chart.

langhammars says:

How about using this strategy with Heikin Ashi candles? Thank you for putting up so many great videos!

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