112# ADX indicator with slow MACD Trading System

Trading with ADX and MACD

 

Submit by Yves 17/10/2013

 

The ’’ADX indicator with slow MACD Trading system, is mainly designed for day

trading the 1 Hour chart. But it could also be used for swing –

weekly – trading the 4 hour chart.

It works with all currency pairs and in all – normal – market

conditions. We all know that price moves in Trends or

Sideways.

 

 

We are going to trade in the direction of the trend and stay out

of the market when it’s moving in sideways.

To do that, we are going to use 2 indicators.

A – MACD indicator :

Fast EMA : 25

Slow EMA : 99

MACD SMA : 45

B – ADX indicator :

Period 18.

Levels : 20 – 25 – 40.

 

 

System Rules

Sell Signal :

A - On 4 Hour Chart AND 1 Hour Chart

1 - MACD bars below 0 line.

2 - Main ADX line above 25 line.

3 - Red ADX line is above Blue ADX line.

 

B – On 1 Hour Chart

Wait until the ADX blue line becomes above red line. Once that

happens you can close the sell trade.

ADX indicator with slow MACD Trading System
ADX indicator with slow MACD Trading System
ADX indicator with slow MACD Trading System
ADX indicator with slow MACD Trading System

 

Stoploss : Last Resistance level or 70 pips.

Target : Opposite Signal ( Buy signal )

You can use any other indicators for stoploss and targets if you

don’t like to wait for a trade too long until an ADX cross

happens.

 

Buy Signal:

A - On 4 Hour Chart AND 1 Hour Chart

1 - MACD bars above 0 line.

2 - Main ADX line above 25 line.

3 - Blue ADX line is above Red ADX line.

ADX indicator with slow MACD Trading System
ADX indicator with slow MACD Trading System

 

B – On 1 Hour Chart

 

Wait until the ADX red line becomes above blue line. Once that

happens you can close the buy trade.

ADX indicator with slow MACD Trading System
ADX indicator with slow MACD Trading System

 

Please note that to enter the trade, the two time frames – 1H

and 4H – must agree on one signal.

But to Exist the trade, all you need to see is an ADX cross on 1

Hour chart.

 

Example

DX indicator with slow MACD Trading System
DX indicator with slow MACD Trading System

 

GBP/USD

Signal : Buy 1.5267

Stoploss 1.5117

Exit 1.5840

Profit = 573 Pips

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