ADX Forex Signals Alert Strategy
Knowing how to combine the finest forex indicators in the most meaningful ways can allow you make much better trading decisions.
Conversely, if the indicators are combined in a wrong way, this could result to a mix-up, error in market interpretation and subsequent losses.
The ADX Forex Signals Alert strategy is designed to be meaningful on all currency pairs.
It gauges the strength of the trend under review and uses the information to investigate further on the likely trend direction.
The ADX strategy works pretty well on any currency pair and for any timeframe.
It suits beginners as well as experienced traders alike.
Let’s getting started with the chart setup:
MetaTrader4 Indicators: adx-buy-sell.ex4 (Inputs Variable Modified; ADXcrossesPeriod=56), two-pole-super-smoother-filter.ex4 (Colors Width Modified; #0=2), ultimate-ma.ex4 (Colors Modified; #0=Yellow, Colors Width Modified; #0=2)
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 blue upward pointing arrow of the adx-buy-sell Metatrader 4 custom indicator pops up below the candlesticks as shown on Fig. 1.0, price is said to be driven to the upside i.e. a trigger to go long on the designated currency pair.
- If the yellow line of the ultimate-ma custom indicator crosses the red line of the two-pole-super-smoother-filter indicator in a bottom up manner as seen on Fig. 1.0, bulls are said to be pushing price higher, therefore a buy order will suffice.
Stop Loss for Buy Entry: Place stop loss 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 red downward pointing arrow of the adx-buy-sell indicator pops up while a bullish trend is ongoing, it is indicative of a bearish reversal, as such an exit or take profit is duly advised.
- If the yellow line of the ultimate-ma indicator intersects the red two-pole-super-smoother-filter indicator line while a bullish trend is running (see Fig. 1.0), price is said to be making a probable U-turn, thus a signal to exit or take profit at once.
Sell Entry Rules
Go short if the following setups gets displayed successfully on the activity chart:
- If the red downward pointing arrow of the adx-buy-sell indicator pops up above the price bars as illustrated on Fig. 1.1, overall sentiment is said to be bearish i.e. a trigger to go short on the selected forex pair.
- If the yellow line of the ultimate-ma custom indicator crosses the red line of the two-pole-super-smoother-filter indicator in a top downward fashion as illustrated on Fig. 1.1, bears are said to be driving price lower, therefore a sell order will do.
Stop Loss for Sell Entry: Place stop loss above short-term resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If a blue upward pointing arrow of the adx-buy-sell indicator pops up during a bearish trend, it is signaling a likely bullish reversal (refer to Fig. 1.1), as such, an exit or take profit is highly recommended.
- If the yellow line of the ultimate-ma indicator intersects the red two-pole-super-smoother-filter indicator line during a bearish trend, price is said to be making a U-turn, thus a signal to exit or take profit forthwith.
Sell Trade Example
About The Trading Indicators
The adx-buy-sell.ex4 is an average directional index indicator type that is used in determining when the price of an fx pair is trending strongly.
The ultimate-ma.ex4 indicator is short for Ultimate Moving Average and it represents a moving average type that is built on the Ultimate Oscillator.
The indicator successfully calculates the weighted average of three moving averages i.e. Simple, Exponential or Linear Weighted.
The two-pole-super-smoother-filter.ex4 custom indicator is a modified moving average indicator that is deployed in measuring trend.