we DONT know where price will go the next second so trust your indicator
CHECKING MOVEMENT'S FORCE - ADX
ADX indicator can be used to check the force of a given movement.
If ADX is rising above 25 and +DI (buy) is > 20 and -DI (sell) is under 10, this is a signal of a good force in the movement.
AUDUSD H1
There was a breakout of a resistance and the upper Bollinger band (main window).
RSI is above EMA 8 and upper Bollinger band.
Both BB are expanding, after retraction.
ADX >25, +DI >20 and -DI < 10.
Stoploss is 42 pips below entry point and TP1 is 62 pips above.
ADX indicator can be used to check the force of a given movement.
If ADX is rising above 25 and +DI (buy) is > 20 and -DI (sell) is under 10, this is a signal of a good force in the movement.
AUDUSD H1
There was a breakout of a resistance and the upper Bollinger band (main window).
RSI is above EMA 8 and upper Bollinger band.
Both BB are expanding, after retraction.
ADX >25, +DI >20 and -DI < 10.
Stoploss is 42 pips below entry point and TP1 is 62 pips above.
Is it Ok with down trend? thanks
NZDUSD H1:
TRADE 1 (Trade D setup): Sell in (1) with SL defined and trailling stop until exit, confirmed by (4). ADX indicates in (6) the good movement. ADX >=25 and rising, -DI > 20 and rising. +DI is not <10 but this is compensated by -DI > ADX.
TRADE 2 (Trade A setup): Buy in (2) with SL defined and trailing stop until (3), confirmed by (5). ADX indicates in (7) the good movement with +DI > ADX > -DI. +DI >=30.
So not always you have ADX>25. Sometimes it is yet in 20 and rising. And not always you have a DI under lvl 10, but if the oposite DI is above lvl 30 and > ADX, this is OK.
Hello, I like your methods : ADX >20 etc.. I have made profit using this. You can check my explorer. I will try to test it again in another pairs. thanks alex. oya, i have not downloaded your latest template.
Your explorer shows impressive results.
When you can, please share some charts with us, ok?
Very good work!
Introducing Traders Dynamic Index - TDI
Dean Malone (www.compassfx.com) created a very good indicator, the Traders Dynamic Index - TDI.
We can use it in place of regular RSI 8 with an EMA 8 applied, and a Bollinger Band applied in RSI.
Lets see it in action with AckelSystem. AUDUSD H1:
We can see that the yellow line in TDI (Market Base Line) is overbought in (1). Then we have a divergence between (2) and (3), suggesting the possibility of a reversion.
This is enough for many traders, but I prefer wait and enter in "sell", when ADX is rising, with stoploss and TP1 well defined. We can manage the trade to target TP2 and TP3.
About the Market Base Line, Dean Malone says:
" Yellow line trends up and down generally between the lines 32 & 68. Watch for Yellow line to bounces off these lines for market reversal. Trade long when
price is above the Yellow line, and trade short when price is below."
Dean Malone (www.compassfx.com) created a very good indicator, the Traders Dynamic Index - TDI.
We can use it in place of regular RSI 8 with an EMA 8 applied, and a Bollinger Band applied in RSI.
Lets see it in action with AckelSystem. AUDUSD H1:
We can see that the yellow line in TDI (Market Base Line) is overbought in (1). Then we have a divergence between (2) and (3), suggesting the possibility of a reversion.
This is enough for many traders, but I prefer wait and enter in "sell", when ADX is rising, with stoploss and TP1 well defined. We can manage the trade to target TP2 and TP3.
About the Market Base Line, Dean Malone says:
" Yellow line trends up and down generally between the lines 32 & 68. Watch for Yellow line to bounces off these lines for market reversal. Trade long when
price is above the Yellow line, and trade short when price is below."