ADX / laggs

Here's an interesting system that's been working for me. I've only used it a couple weeks....take a peek at some eur/usd charts and tell me what you think. I've been conservatively getting 15 pips a win...It working for me 80% of the time. I'm a little skeptical because the euro has been fairly easy to trade the last few weeks.

Use standard:
RVI
Lagh-acs (laguerre)
ADX
Stoch 5,3,3

1. Watch for the lags, stoch, RVI to be maxed up for short or maxed down for long.

2. When the stoch drops then get ready....this chart is a 30 minute. This is a short. (look at about 20:30 on may 25th)

3. The next to start dropping for a short is the RVI

4. The lags should start down very shortly after

5. Watch the ADX, D- (yellow dotted) to cross over the D+ (pink dotted) and start upward. This means the short will be on after a good solid cross. If D- is moving up it's a short....if D+ is moving up it's a long.

6. The ADX index (red line in ADX indicator) will be flat lined or bending upward....it should be 27 or better...moving upward. This line only says....the price is trending....it will always move upward if trending, no matter if you doing a short or long. Notice it starts to bend when the price moves below (short) the 5 ma low....opposite for a long. I like the 5ma high and low....it tells me the trend is fairly solid when it breaks above the 5ma high or below the 5ma low....they are the light blue dotted lines

7. Look at 20:30 on may 25th...you'll see the stoch start and follow it out with the other indicators. The ADX index slightly bends up...it's not as obvious on this one but you can see a slight bend up. You can also see a long at about 8:30 on may 25th...it starts with the stoch. The ADX index is not as obvious on this one also...you can see it slowly bending upward...I would have entered at about 13:30 5/25/10. The D+ (pink moving up) break is solid and the ADX index starts to turn up. The blue lag is at about "0"

I'll make it more simple...for a short
1. Stoch drops
2. RVI drops
3. Lag (especially blue) drops
4. ADX, D- (yellow) crosses D+ (pink) solidly and moves upward
5. Red line in ADX (index) is at 27 or better moving upward
6. price drops below 5 ma low (light blue dotted line)
7. Enter the short
8. I use 30 Stop loss....go for 30 TP...usually take 10-25 pips on 30 min or 1 hr chart

Look at the chart...look at your own....some are more obvious then others. The obvious ones seem to be very solid for 10-20 pips on 30 min chart. I've used it a lot on the 1 hour too. Let me know what you think.

Indicators + template plz!!

They're listed....they're at every mt4 broker...except the laguerre.....you can find lags on this site. Search it.

Cugir321
I see your charts for EU/USD. Have you tried other pairs?
bcarbon.

I haven't used other pairs. I did add one there thing. 3 moving averages, which I run on another chart next to the original. 10ma, 20ma, 50 ma. I use this to determine the trend. Knowing the trend, as in most systems, is the utmost importance. When the 10ma crosses the 20ma then get ready....when the 10 crosses the 50 start to look for an entry. If the 10 and 20ma are seperated nicely as they cross the 50ma then it is usually a good sign.

Hi Cugir,

I have been interested in ADX for a few years and have been trying to refine the entries/exits using it.

I use the MACD on 12,26,9 (instead of your 10,20,50 SMA) and the MACD has to be correct at the time of getting a signal on the DMI/ADX.

I also use an additonal criteria also which ups the % of winning trades which I will be mor ethan happy to share with you if there is interest in this thread.

Also you can cut the need for lag/RVI/stoch imho.

I find these work best for counter trend trades and that is not what we are trying to achieve using ADX etc.

Please, give me indicator LaugH-ACS

here ya go....

Here`s the lag indi with the histogram like the one on his chart.....

I am more then thankful and happy to hear your macd system with additional indicator!!!!! I've done very well with my system but if there's a way to simplify it and make, especially the exits, stronger then I'm all ears. I usually get out too soon and short myself a bunch of pips.

I'm going to list a macd indicator 12, 26, 9 and see if I can spot what you're talking about. Very excited to hear your system!

I've done fairly well using the MA's and the d-, d+ crossover for a ranging chart. The ADX is wonderful with a trending chart as I'm sure you know.

I just loaded the macd on the chart. I kind of see what you're talking about. The histogram on the macd is very similiar to the stoch 5,3,3.....the macd signal lines are simliar to the rvi and laggs. I do like the more pronounced view of the stoch but I could get used to having two indicators.

It is very interesting how the signal line and macd line on the indicator show where the 50 moving average lies by watching when they cross the zero histogram line. It looks like the zero histogram line is the 50ma!!! It denotes the trend. I appreciate that thought....the macd. I see how powerful it is!!! There is a ton of info in the macd. More then I've ever seen before.

I use the support and resistance (barry) indicator alot! (also master candle indicator) To gauge my entries and exits. If theres a line of support dots....I'll enter 5 pips or so below it. I'll exit before the next line of support dots if it's a major line. (for a short...I've been trading mostly shorts lately)

Now i have to go through your old posts!!!

Just went through your directional movement thread....interesting thoughts on the 20 adx and the 40 number....I see where it works. I have no doubt your system works. Mine is a variation of your's and mine works. I usually use a 30-35 pip sl from a break of a support line on a short...seems to work well. I'll work out the basics and then look for a support line to break with the barry indicator (short). I always go down a time frame or two to verify what I think. you don't have to use the s/r but it works better with it.

I will say....when you see the chart indicators in the positions listed in above chart....it is usually very powerful. Load a chart with the above indicators and compare your's when it looks as posted. I've set up two charts....one with yours....one with mine....I have a feeling it will be more powerful using both charts at once.

ACartwright,

Here are two charts...one is your's and one is mine. I like having the info from both. I bought when the price dropped to 1.1994. I sold at 1.1975. Made 19 pips. I felt like I was a little late starting the short but I bought on a solid break of 1.2000. The psyc level. Notice on your chart I have a 10ma (red), 20ma (purple), 50ma (yellow). I like the widening split of the 10 and 20ma. This seems to be information not listed on the macd indicator. Even though the macd histogram seems to be saying the trend is changing a bit, the 10 and 20 ma says it will continue down because of the widening of the two ma's. Notice how the cross of the 10 and 20 ma corresponds with the cross of the signal and the macd lines The signal / macd lines start to close up a bit and the macd histogram starts up...the ma's 10 and 20 do not....my guess is that it's saying beware of a change in the near future but it will continue to drop for a short time. I will watch for the 10ma to start a "turn up".

Thanks Bro!