The ADMI MACD trend following strategy consists of 3 trading indicators: ADMI, Macd-Dot and 200 SMA.
I’ll be using the 200 SMA for overall trend direction, the ADMI to measure trend strength and to confirm the prevailing trend, and finally the MACD Dot indicator to enter a low risk trade in the overall trend direction.
MetaTrader4 Indicators: Average Directional Movement Index, macd-dot.ex4, 200 Simple Moving Average
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day
Recommended Trading Sessions: Any
Currency Pairs: Any pair
USD/JPY Daily Chart Example
- Price above the 200 Simple Moving Average (bullish trend direction)
- +DI above -DI (bullish trend confirmation)
- ADX above 20 (bullish trend strength)
- Blue MACD Dot (long entry signal)
Place stop-loss below the most recent swing low. Take profit just before key resistance levels or apply risk-to-reward ratio 1:1.5 or higher.
The USD/JPY chart above shows us 6 profitable buy signals along the uptrend.
- Price below the 200 Simple Moving Average (bearish trend direction)
- -DI above +DI (bearish trend confirmation)
- ADX above 20 (bearish trend strength)
- Red MACD Dot (sell entry signal)
Place stop-loss above the most recent swing high. Take profit just before key support levels or apply risk-to-reward ratio 1:1.5 or higher.