ADX Power

Timeframe: I use it on 4 hours, feel free to use it on smaller timeframes as well

Currency Pair: Any


Indicators: EMA9 and EMA26 and DMI (Directional Movement Indicator with ADX)

DMI Settings: Draw a horizental line at 25 to watch for the crossovers of DI+ or DI-

ADX Settings: Ignore signals where ADX is lower 20





  EMA9 has crossed over EMA26

  DI+ >= 25

  ADX >= 20

  ADX is in between DI+ and DI-


  EMA26 has crossed EMA9 AND

  DI- is higher than DI+



  EMA26 has crossed EMA9

  DI- >= 25

  ADX >= 20

  ADX is in between DI- and DI+


  EMA9 has crossed EMA26 AND

  DI+ is higher than DI-



  While in Long Position: DI+ and DI- Cross-overs while the EMA9 is still on top of EMA26

  While in Short Position: DI+ and DI- Cross-overs while the EMA26 is still on top of EMA9

  While searching for Trading Opportunities: The EMAs has crossed over but the DI+ or DI- (depending on whether you're looking for Long or Short positions) are still under 25. Also, wait till the ADX has reached 20 before entering into Trade

  Price breaking the Lower EMA (EMA26 in case of Long Positions) line while the EMA9 is still on top of EMA26

Attached Files:

Posted By maishamrittika : 30 June, 2020
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Many traders love the allure of the volatility of the forex markets and prefer to trade intraday by opening and terminating positions within the hours of each other. Trading the daily charts is not very common because many traders lack the necessary patience to follow a trade for weeks on end to its logical conclusion. There are many things that a trader will gain by trading off the daily charts.   In the first instance, we must be very familiar with the saying that the trend is our friend until it ends. The only way to determine the true trend for a currency is to look at the daily chart. A typical daily chart snapshot will show the price action for weeks at a time. You can then tell just by looking at the chart to see whether the trend is up, down or ranging.     The chart above is the daily chart for the USDJPY. It is very clear from inspection that the currency pair is in a very strong uptrend after a long period of consolidation that lasted close to a year. Using short term charts will not give the true picture.   Trading off the daily chart will reduce the frequency of trades, but will also allow the trader more time to assess a trade setup and trade it with greater certainty. Trade targets are larger, and a trader can make money from a few trades that will far outstrip what he will make by chasing pips all over the place.   One trade I love to take off the daily chart is the retracement trade. Pullbacks are a normal part of trading because there will always be early bird traders who got into positions very early in the trend and will be looking to take some profits off the table. When they offload their positions, the price action of the currency will retrace.   Now I am usually interested in the continuation of the moves in the direction of the trend. For me to do this, I need to know where the retracement will come to an end. With 5 points to choose from the Fibonacci retracement tool, I need to get a clear idea of where to make my entry.   The tool I have found most useful is the Stochastics oscillator. When it crosses at overbought or oversold levels, it gives me a clear indication of exactly where to make my entries.     From this daily chart above, the Stochastics crossed at oversold levels of 24.1 at the 50% Fibonacci retracement line. An entry here would have produced 250 pips as at the time of writing this on March 20th 2012.   This is a simple strategy that works all the time. Trade the retracements off the daily chart.

A pivot point is a specific price level calculated and then used as a technical analysis indicator and trend filter in a chart’s time frame. A charts pivot point level is the average of the high prices, low prices, and closing prices from the last trading day. Price trading above a pivot point signals a potential uptrend and price trading below the pivot point signals a possible downtrend. The pivot point is the foundation for the technical indicator and other price support and price resistance levels that are also projected by using the pivot point calculation. The price levels created by using the pivot points show traders where potential price could see support or resistance levels emerge. Also when the price breaks these key levels it signals to a technical trader the price is currently in a trend in the direction of the break out.  There are different ways that are used to calculate the pivot point of price action on a chart. It is usually considered to be the mathematical average of the high price, low price, and closing prices of a market in the previous trading periods: P = (H + L + C) / 3. Many times the average also includes the previous period’s or the current period’s opening price: P = (O + H + L + C) / 4. Some traders like to focus on the closing price, P = (H + L + C + C) / 4, or the current period’s opening price, P = (H + L + O + O) / 4. P= Pivot Point H=High Price L=Low Price C=Closing Price O=Opening Price Below is the monthly pivot point chart of the DJIA for the first 8 months of 2009 near the market bottom, the below chart shows the first and second levels of resistance in green and support with red. The pivot point levels are in yellow. Trading below the pivot point, particularly at the beginning of a trading period sets a bearish market sentiment and often results in more of a price decline, while price is above it a move higher may continue until it is lot again. A pivot point can be both a range bound indicator and show where to look for buying dips and also a trend trading indicator on breakouts.  

I have spent a considerable time studying your strategies and i would like to share with everyone what i have taken and now apply to my trading.   Any currency pair can be traded   Indicators: 5,10,20 EMAs - RSI - MACD   Time frame: I use 15min charts (I find bigger time frames to slow and bigger stops)   Entry rules: On an down trend wait for a higher low.Find a 1-2-3 setupEnter long just below 2 with stops just under 3RSI MUST be above 50MACD must be or just about to cross over.    Exit rules: Once you have reached to same distance as risked close out.     

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