View Full Version : The 3 Musketeer Trade
The Most Effective ADX Strategy
needing to develop a most effective and efficient egy to trade forex isn't quite as simple as everybody thinks, have not traded with a lot of egy and wind up burning all of my margin in my account, I went to do a lot of research and back test on most egy and I found out this superlative ADX Strategy, Ever since I have been applying this I could predict what another Candle would be in my own trading.
This Strategy is greatest traded on the 15 Min Chart
Therefore, I make use of only:
1. Pivot Points
2. Multiple 5,6 EMA (Exponetial Moving Average)
3. ADX (Average Directional Movement Index) Use to identify the trend
That many people, the 3 Musketeer Trade.
That I will let you know how I use the indiors within my next Post.
Jamiu.
I am interested in ADX thoughts. Looking forward to it.
I agree with you, developing a technical system for forex is not easy. I've been trading stocks for a little while and I find that stock market is much more technically driven. And moreover, in shares you deal with one instrument, such as the stock of CSCO,INTC, etc.. You buy/sell them with money from your account. But in FX you constantly handle a pair, thus a management of the pair is always influenced by both currencies none (such as from the stock market).
Anyhow, good luck developing your system. I do not usually use ADX ( I mostly use MACD) but it has potential for giving great signs.
Cheers,
Steve
...I can predict what another Candle will probably be... You mean, with 100% certainty each time? Day in and day out, month after month? Awesome!
What does ma imply? You have 5's and 6's? Or just a 5 and a 6 ema, or a 5 based on what or close high and low plus a 6 ema on low close and open?
The 5, 6 EMA, Is 5 period moving averages, applied to open with color Red and 6 period moving averages, applied to close with color Yellow.
It can help to Identify a change in trend and they are lagging indior but I make use of it to indie a confirmation of a trend.
The ADX, is top indior, it tells signal a tendency sooner than the moving averages, but it has fakeouts, that I why you need to await confirmation and also a confluence of occasion from the moving averages. And employing the pivot line as your profit shooting area.
I will post the complete ADX egy shortly, pls be on a lookout.
Jamiu.
The 5, 6 EMA, Is 5 period moving averages, applied to 6 and open period moving averages, applied to shut.
It Helps to recognize a change in trend and they're lagging indior but make use of it to indie a confirmation of a trend. Giving very wonderful counter tendency indies, bravo!
Yo followers may also try to use SuperSignalsV2, SilverTrendSig, Fractals, ZigZag - theese indiors are cumulative, signal given by one of em mean nothing, however if 3 of are identifying peak, it's much more stronger signal.
But me dont want to overwrite yo' sistem - just 2c to see better how it may/have to get the job done.
Thanks
Nice day!
Giving very nice counter trend indies, bravo!
Yo followers can also attempt using SuperSignalsV2, SilverTrendSig, Fractals, ZigZag - theese indiors are accumulative, sign given by one of em mean nothing, but when 3 are identifying peak, it is much more stronger sign.
But me dont want to overwrite yo' sistem - only 2c to see how it may/have to work. I believe all these are notorious for repainting, Supersignals v2 may not, '' I can't recall for certain.
I believe all these are notorious for repainting, Supersignals v2 may not, '' I can not remember for certain. That's thought - for all of em (anticipate fractals (painted 2 bars back), but in theory, it's the same)
Theese are indiors finding possible reverse of this trend!
That is why it is more powerful to utilize them as cumulative ones!
This is idea - for all of em (anticipate fractals (painted 2 bars back), but in principle, it is the same)
Theese are indiors discovering possible reverse of this trend!
That's the reason it is stronger to use them as accumulative ones! I gotcha today
I gotcha now Additionally consult a number of TFs!
When trading M15, consult M30, before you choose to close commerce - your behavior however depends on what sort of trader you suppose to be.
Should you get in with many lots, you want to get out ASAP, with tight equally SL and TP!
Which may be all for rapid brief I started here.
Thanks
Nice day!
Thank you for clearing that up, look forward to hearing more from you
The 5, 6 EMA, is 5 phase moving averages, applied to start with color Red and 6 period moving averages, applied to close with color Yellow.
It can help to Identify a change in trend and they are lagging indior but make use of it to signal a confirmation of a fad.
The ADX, is leading indior, it tells signal a trend sooner compared to moving averages, but it's fakeouts, that why one have to wait for confirmation and a confluence of occasion from the moving averages. And using the pivot point as your profit occurring place.
I shall post the full ADX egy shortly, pls be on a lookout.
Jamiu.
Looking forward to the system release!
Hi
Is new to me personally that Adx gives historical entry signs....but possibly another use?
regards
lodol
Hello Folks I want to present you the ADX before I tell you how I make use of it. It may be contrary to make use of this indior but it effective for me personally.
I have to let you know that ADX is trend indior but sadly traders do not make use of it on daily trading, either weekly or yearly basis.
The ADX (Average Directional movement Index) Indior </b>
The ADX is part of the management movement system introduced by J.Welles Wilder in his book New Concepts in Technical Trading Systems. It includes the Directional Movement lines -- both the plus DMI line along with the minus DMI line -- along with also the ADX line (the Average Directional Movement Index)
ADX is created with regard to both negative and positive directional motion and identifying sustained movement in 1 direction. While this happens ADX will rise (irrespective of whether the trend is lower or higher). Trend management is identified by whether favorable motion (DMI ) is over or under negative motion (DMI-). After ADX rises above a particular degree a trend can be believed to have been established.
Although the average directional movement index (ADX) isn't used as frequently as a number of the most popular technical indiors the ADX line has certain benefits since it filters out a lot of the fictitious oscillator signs which are frequently given early in a movement.
A trader can remain with trending positions more by following the simple guidelines for the ADX line. A rise by the ADX line over 40 followed by a downturn, signals an imminent end to the current trend (whether or not down).
The ADX is significantly less useful during backward markets. During consolidation spans the ADX line will slip toward 10. When ADX approaches 10, a major movement is going to take place. But the ADX line doesn't tell you which direction it will go. You have to rely on indiors for the likely direction of the next move.
In short, if the market is trending, the ADX line should be rising. During a protracted consolidation period the ADX line will slip toward a low number.
To sum it up -- It signals the beginning of a trend, when the ADX begins rising from a level. The trend is supported when the ADX has risen over the 20-25 value along with the DMI lineup has crossed the --DMI lineup (in the event of an uptrend) When the ADX has attained an abysmal level of 40-50 and starts consolidating or turning down it can signals the end of the current trend. The ADX's decrease signals the consolidation or indecision of the market. The optimum use of this indior is to consider transactions when the ADX has started to rise from a very low level, since it suggests a sideways basing pattern was shaped and trends emerge from prolonged sideways periods giving exceptionally profitable transactions.
He chart illuion shows how the ADX effectively signifies a range bound area along with also the breakout forming the following trend.
Http://www.tradeology.com/images/adx.GIF Trading With The Trend - ADX Strategy </b>
The currency markets have been known to trend nicely. At the same time, staying with it and grabbing a trend, isn't as simple as it appears.
Price always moves in wave movement, forming impulsive and corrective waves and many a times a major retracement could be interpreted as a reversal, simply to see the trend continue.
The market saying of ?trading the pullback? would fit this situation nicely.
Consequently, if we can identify a strong trend and properly interpret the corrective waves of the trend as a retracement, it might make trading more profitable.
Keeping this in mind we shall make a system which provides us the capability to trade pullbacks from the direction of the primary trend by combining 2 technical indiors.
The advantage is the unique characteristic of every single gives us the joint interpretation which we're searching for.
The first indior is the ADX with the standard setting of 14. It's a trend indior, which explains a sustained movement in 1 direction. Once the ADX rises above a particular degree a trend is said to have been established. You stay simply by observing the ADX isn't declining. An ADX reading of over 30 suggests a strong trend is in place and we shall use this parameter for our egy.
The next indior is the Exponential moving average with a return period of 21. The EMA 21's fundamental use is that it frequently functions as a dynamic barrier of service and resistance. Within an uptrend price will remain over the 21EMA and much more loe support.
By blending these unique characteristics of the above two indiors we today define our parameters to the system. We'll define by reversing the parameters the very same rules and a very long trade apply.
Initially an ADX reading of over 30 is required, which suggests a strong trend is in place.
After this parameter was met and price retraces back into the 21 EMA we've got a buy signal.
We input the trade on the rest of the high of this pullback pub, and put the stop below the low of the entry bar. The exit would be when prices cross the 21EMA down.
Http://www.tradeology.com/images/adx2.GIF
And since we can see in the chart we've both long and short transactions completed successfully. It's a straightforward egy with a high likelihood of succeeding. Since we're going with the trend we're waiting for price to confirm our transactions. The drawback is the fact that it works in trending markets and shouldn't be used when price is range bound.
The ADX (Average Directional movement Index) Indior </b>
Pls Enjoy this introduction to ADX and I will post the use this indior for my own advantage.
Good Luck and Happy trading....
Jamiu.
Is this with?
Thanks for the information on ADX. . .very informative.
How will you use the 5/6 ma crossover with ADX to ascertain the next candles direction?
Thank you for the answer, is good that somebody appreciate the posting of the ADX egy,
Well, I just make a little modifiion to my trading egy to make my trading more better by incorporating yet another 21 EMA moving average, now am having 3 EMA on my chart 5,6 and 21 EMA. This make price management more clearer. Thus I do not forecast the candles together with EMA, I just make use of to identify the tendency, but in which that power come in is behind the ADX, am current composing a book on the uses ADX to my our advantage and the way I use it to forecast another candle.
I shall post the entire book on forexintuitive the moment it done, pls do be looking out.
Thanks.
Jamiu.
How about giving us the principles of your own body.
When we have any queries, we will wait for the publiion.
Thanks
hi jamiu....
What period would you use in your adx? 14?
Thanks for sharing your system.... I'm awaiting your ebook too...
thanks ahead of time...
Hello Again,
Thanks for the article and replies, well the rule into the machine is simple; ALWAYS WAIT FOR CONFIRMATION from ADX along with the candle sticks pattern, I've alway love to mention Trading is not a race but just how much pips you create and the worthiness of those pips, so don't simply jump into commerce without because confirmation from your indiors.
And Yes I use 14 interval for your ADX setting.
Pls, be looking for the publiion.
Thanks again.
Regards.
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