37# ADX and EMA Trading System
Submit by Janustrader 02/04/2011
Time frame:15-hour, 1-hour, 4hour and daily timeframes.
Pairs:EUR/USD, GBP/USD, USD/CHF, EUR/JPY, USD/JPY.
Indicators:
Exponential Moving Average 18-period (EMA18, Blue color in the
illustrations)
Average Directional Movement Index 12-period (ADX12)
Rules for Sell Signals (Short Trades):
- First, price is in a downtrend - and ADX12 value is greater than
25.
- Second, price rises in a rally (retracement) – and touches
EMA18. But at the first bar when price touches EMA18, ADX12
value is still greater than 25.
(This ADX12 requirement is only applied for the first bar when
price begins to touches EMA18 – for subsequent bars, ADX12
value could be lower than 25)
- Once price touches (or penetrates slightly) EMA18, we place a
sell order 1 pip below the Low of the preceding bar. When price
breaks below the Low of the preceding bar by 1 pip, we enter a
Sell (Short) trade.
- Stop Loss: We place a protective stop loss 1 pip above the Highest Price of the Rally (Retracement).
- Profit Targets: We place our target objectives at the last Swing Low.
Price rises in a rally (retracement) – and touches
EMA18. But at the first bar (yellow highlighted bar) when price
touches EMA18, ADX12 value is still greater than 25. In this
example, ADX12 value of that bar is 28.
Once price touches (or penetrates slightly) EMA18, we
place a sell order 1 pip below the Low of the preceding bar.
Next Bar (Big Red Bar): Price breaks below the Low of
the preceding bar by 1 pip, we enter a Sell (Short) trade.
We place our target objectives at the last Swing Low.
This target is easily hit in this example.
Rules for Buy Signals (Long Trades):
- First, price is in an uptrend - and ADX12 value is greater than
25.
- Second, price declines in a pull-back (retracement) – and
touches EMA18. But at the first bar when price touches EMA18,
ADX12 value is still greater than 25.
(This ADX12 requirement is only applied for the first bar when
price begins to touches EMA18 – for subsequent bars, ADX12
value could be lower than 25)
- Once price touches (or penetrates slightly) EMA18, we place a
buy order 1 pip above the High of the preceding bar. When price
breaks above the High of the preceding bar by 1 pip, we enter a
Buy (Long) trade.
- Stop Loss: We place a protective stop loss 1 pip below the
Lowest Price of the Pull-Back (Retracement).
- Profit Targets: We place our target objectives at the last
Swing High.
Share your opinion, can help everyone to understand the forex strategy.
ADX Forex Strategies
112#ADX with Stochastic - Forex Strategies - Forex Resources ...
55# ADX filtered SMA 21 - Forex Strategies - Forex Resources ...
69# ADX, Parabolic Sar and three EMA - Forex Strategies - Forex
25# ADX, Awesome and Stochastic Histogramm - Forex Strategies
31# ADX and Moving -Average Channel - Forex Strategies - Forex
18# Emas'Cross and ADX - Forex Strategies - Forex Resources ...
9# Parabolic Sar and ADX - Forex Strategies - Forex Resources ...
21# Slow Stochastic, Mas and ADX - Forex Strategies - Forex ...
ADX Metatrader Indicator - Forex Strategies - Forex Resources ...
75# Awesome, Stochastic and ADX - Forex Strategies - Forex ...
16# Bollinger Bands with ADX, RSI and Two MA - Forex Strategies
15# Bollinger Bands and ADX - Forex Strategies - Forex Resources
80# ADX with MACD II - Forex Strategies - Forex Resources - Forex
182# High Low with Adx - Forex Strategies - Forex Resources ...
10# Bollinger Bands, RSI and ADX - Forex Strategies - Forex ...
37# ADX and EMA - Forex Strategies - Forex Resources - Forex ...
Trend following Forex Strategies
