How to trade ADX with EMA

The Average Directional Movement Index (ADX) and Exponential Moving Averages (EMA) trading is an intraday strategy. Setting indicators:
ADX 14 period close;
Exponential Moving average 20 period, close.
Time Frame 15 min, 30 min, 60 min (strategy for day trading).
Currency pairs: major.
The main focus is buying during a bullish trend correction and selling during a bearish trend correction. ADX is used to determine the strength of any tendency to trend, and EMA is used to indicate entry points as more recent data has much more weight and older data has much reduced weight. The strategy works with any currency pairs and any timeframes. However, the bigger timeframe is used, the more chances to get under influence of various macroeconomic factors. Therefore, the best time interval is between 15 and 60 minutes. ADX measures the strength of any tendency to trend.
The ADX line varies between 0 and 100. In practice, values higher than 60 are relatively rare. Small values (under 20) tell you about trend weakness, high values (over 30) tell you about trend strength. The ADX line itself does not indicate trend direction (bear or bull); higher values can point to both bullish and bearish trend strength. EMA generates trading signal. When the price line crosses EMA upward, it is the signal to buy and vice versa. 14-period ADX is used to determine trend strength. An entry point is determined using 20-period EMA when the ADX line rises above 30.
A BUY position is opened when the price crosses EMA upward, and ADX is over 30, but under 50. A SELL position is opened when the price crosses EMA downward, and ADX is over 30, but under 50.
If the ADX line rises above 50, the trend may be close to its end, so trading decisions should not be made. If the ADX line falls below 30, and an entry point is still not found, the trading strategy will be reset. Target: A long position will be closed when the price crosses the EMA line downward. A short position will be closed when the price crosses the EMA line upward.
How to trade ADX  with EMA
On ADX with EMA
ADX measures the strength of a trend but doesn't distinguish between up trends and down trend.
ADX >= 50 very strong Power trend.
ADX 25-50 Strong trend.
ADX 15-25 weak no trend.
ADX <15 no trend.
How to trade ADX  with EMA


How to trade ADX  with EMA


ADX with EMA setup

ADX Power trend are preceded by a consolidation period > 30 bars where adx is <25.
ADX usually hits peaks of 50 and retracement troughs often remain above 25.
Price remain above 20 EMA the majority of the time.
Trend tend to look overextended -we think is later to enter.
Power trend allow trader to let profit run.
Sum trade setup
30 bars of low ADX range consolidation ADX <25.
DMI lines are above ADX, movig sideways,
Long DMI + makes a crossover high signal.
Entry
Buy breakout on resistance line cross.
On enter on first pullback near 20 EMA on pivot low completion.
Sell breakout on resistance line cross.
On enter on first pullback near 20 EMA on pivot high completion.
ADX Power Trend


ADX Power Trend

ADX Power Trend

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