Indicator strategy ADX for EUR

Indicator strategy ADX for EUR / JPY

Today, in the cycle of reviewing new and simply interesting indicator strategies, we will learn about a completely new trading system called "ADX 15 Minutes EUR / JPY Trend Strategy". It is really new, because just the other day it was published on the popular Western forum of traders.

Within a few days, this strategy has attracted the attention of many users and traders, and it continues to gain popularity.

With our help, you will also be among the first who have already read it and know:

  1. What instruments is it built on?
  2. What rules does it follow?
  3. What signals do its instruments give and how to trade these signals correctly?

We will adhere to this plan, revealing all its points in order.

Instruments of the TS "ADX 15 Minutes EUR / JPY Trend Strategy"

You can see all the instruments for this strategy installed on the chart in MT4 in the picture below:

In fig. 1 you see indicators installed on the terminal chart from a ready-made template. You can download the template at the end of this article.

If you do not want to use indicators in your trading, then you can download the basic course of the TS "Sniper X". This is a system with which you will start trading profitably today, working only from levels:

 

After downloading and unpacking the template from the zip archive, the unpacked indicator and template files should be placed in the appropriate folders of your terminal. You can do it like this:

  1. Copy the template file (with the ".tpl" extension) to the "templates" folder.
  2. You should copy the unpacked indicator files (files with the ".ex4" extension) to the "MQL4" → "Indicators" folder.

 

 

As seen in Fig. 3, on the chart we have 6 indicators, of which only two are included in the package of standard terminal tools. These are the "ADX" and "RSI" indicators, the other four instruments are the author's indicators.

So, the indicators are installed and configured. We just have to understand the principle of their work in this TS and find out what signals they should send to the trader.

Indicator signals and market entry

After installing the indicators, you need to open the desired chart:

We have already done all this and are now starting to study indicator signals and rules for entering the market using them.

Login with purchase

To open a buy position, we need several conditions to be met:

  1. The appearance on the price chart of a blue arrow pointing up.
  2. The RSI curve in its window lies above the level marked "60".
  3. The ADX curve in its window is located above the level marked "22".

If all three conditions are met, open a buy trade:

In Figure 4 we see that we have all three input signals. The ADX indicator curve is just beginning to rise above the level “22”, but we can already take this as a signal and open a buy position.

According to the trading rules within this strategy:

Login with sale

Sell ​​signals are opposite to sell signals:

  1. The arrow on the price chart is colored red and directed downward.
  2. The RSI curve is below the 40 level.
  3. The ADX curve is all above the “22” level.

All conditions are met - we open a sell position:

Profit fixation

Profit fixation

We can fix profit in different ways (depending on the situation):

  1. The deal can be closed by Stop Loss order.
  2. It is necessary to strive to close by Take Profit. It is possible to set several Take Profit levels. In this case, when the price moves in the direction of an open position, you can move the deal to breakeven, fixing a part of the profit, and continue it until the maximum profit is obtained at the next Pivot level.
  3. Profit taking at breakeven.
  4. Closing a position when an opposite signal appears on the price chart:

 

We see that the position was not closed by Stop Loss, because the price was moving confidently in the direction we needed. At the same time, at the Take Profit_1 level, we move our trade to breakeven and observe further how the price continues to move towards the next Pivot level. A little short of this level, we placed Take Profit_2, where our trade was closed with a higher profit:

Price at entry level = 129.406

Profit was: 53 points

Profit was: 98 points

We see that the price showed a good movement, and we were not mistaken by placing the second Take Profit at the distant Pivot level. For this trade, we managed to take almost 100 points of profit.