ADX with Exponential
Moving Averages Scalping is a trend following Scalping system.This
technique of Average Directional Index (ADX) and Moving Average based
on my personal experience, can be profitable, provided that the rules
are applied with discipline.
Currency pairs: major (EUR/USD, GBP/USD, USD/CHF, NZD/USD, AUD/USD, USD/JPY, EUR/JPY.
Indicators needed
Exponential moving average
7 period, close,
Exponential moving average 21 period, close,
ADX 14 period (default).
ADX first and how it
works.
Within the ADX indicator
there are 3 components, namely ADX Line, ADX DI- and ADX DI +. Each
component has a different function.
Line ADX = to measure the
strength of the trend.
ADX DI- = line to measure
vendor strength.
ADX Line DI + = to measure
the strength of the buyer.
Illustration, if the ADX
line moves upwards and ADX DI-Cross on ADX DI + indicates that the
price tends to be bearish (downward trend). And vice versa, if ADX
Line goes up and ADX DI + Cross up ADX DI- means that the price tends
to be bullish (uptrend).
Scalping strategy with
ADX and MA:
Time Frame M15.Currency pairs: major (EUR/USD, GBP/USD, USD/CHF, NZD/USD, AUD/USD, USD/JPY, EUR/JPY.
Avoid the sideway market.
Long Entry: EMA 7
crosses EMA 21 upwards.
ADX DI + Cross ADX DI-
upwards.
Exit when the
signal has reversed
Short Entry: EMA 7
crosses EMA 21 downwards.
ADX DI- Pass ADX DI
downwards
Exit when the
signal has reversed.
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