The Advanced ADX Logic Forex trading strategy is an exceptional trading system that is designed around the Average Directional Index (or ADX indicator).
It seeks to profit from the currency market by trading the strength of the market.
The main idea behind this strategy is its ability to spot directional moves.
However, traders can quickly achieve their preconceived financial goals by adhering to the Advanced ADX Logic Forex trading strategy rules.
Regardless of the type of trader you are, a strong directional move is required after entering a position and in order to stay profitable, the move must take place in the direction of your trade.
MetaTrader4 Indicators: advanced-adx.ex4 (Inputs Variable Modified; ADXPeriod=38), trend-logic-indicator.ex4 (Inputs Variable Modified; LT_Period=42)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week
Recommended Trading Sessions: Any
Currency Pairs: Any pair
Buy Trade Example
Long Entry Rules
Enter a bullish trade if the following indicator or chart pattern gets put on display:
- If the green rising bars of the advanced-adx Metatrader 4 forex indicator pops up within the indicator window as shown on Fig. 1.0, it is an indication of a strong bullish directional move, as such a trigger to go long on the desired forex pair.
- If the trend-logic-indicator line turns green and gets aligned slightly below the price bars (see Fig. 1.0), price is said to be driven higher i.e. a signal to go long on the stipulated currency pair.
Stop Loss for Buy Entry: Place stop loss 1-3 pips below short-term support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit from all trades if the following rules or conditions takes precedence:
- If the advanced-adx indicator pops up a red bar that declines below the preceding green bar, a change in bullish directional move is looming, hence an exit or take profit is highly recommended.
- If the line color of the trend-logic-indicator reverts to red as shown on Fig. 1.0, bears are said to be opening more market positions, as such an exit or take profit will suffice.
Sell Entry Rules
Go short if the following setups gets displayed successfully on the activity chart:
- If the red rising bars of the advanced-adx custom indicator pops up within the indicator window as seen on Fig. 1.1, it is an indication of a strong bearish directional move, as such a trigger to go short on the designated currency pair.
- If the trend-logic-indicator line turns red and gets placed fairly above the candlesticks as indicated on Fig. 1.1, price is said to be pushed lower i.e. a signal to go short on the currency pair of focus.
Stop Loss for Sell Entry: Place stop loss 1-3 pips above short-term resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If the advanced-adx indicator pops up a green bar that declines below the preceding red bar, a change in bearish directional move is on the horizon, hence an exit or take profit is duly advised.
- If the line color of the trend-logic-indicator changes to green as exemplified on Fig. 1.1, bulls are said to be taking up more market orders, as such an exit or take profit will do.
Sell Trade Example
About The Trading Indicators
The advanced-adx.ex4 indicator is a technical tool that is deployed in detecting strong directional moves.
It is used in gauging the strength and weakness of an underlying trend.
The trend-logic-indicator.ex4 is a technical indicator that resembles the moving average line, but in this case it is known to change the color of its line to represent current market sentiments in line with bullish/bearish trends.