Forex trading strategy #14 (ADX Power)

ADX POWER

- Timeframe: I use it on 4 hours, feel free to use it on smaller timeframes as well

- Currency Pair: Any

- Indicators: EMA9 and EMA26 and DMI (Directional Movement Indicator with ADX)

- DMI Settings: Draw a horizental line at 25 to watch for the crossovers of DI+ or DI-

- ADX Settings: Ignore signals where ADX is lower 20

GO

LONG WHEN:
- EMA9 has crossed over EMA26
- DI+ >= 25
- ADX >= 20
- ADX is in between DI+ and DI-
EXIT LONG WHEN:
- EMA26 has crossed EMA9 AND
- DI- is higher than D

GO SHORT WHEN:
- EMA26 has crossed EMA9
- DI- >= 25
- ADX >= 20
- ADX is in between DI- and DI+
EXIT SHORT WHEN:
- EMA9 has crossed EMA26 AND
- DI+ is higher than DI-

WHAT TO IGNORE:

- While in Long Position: DI+ and DI- Cross-overs while the EMA9 is still on top of EMA26

- While in Short Position: DI+ and DI- Cross-overs while the EMA26 is still on top of EMA9

- While searching for Trading Opportunities: The EMAs has crossed over but the DI+ or DI- (depending on whether you're looking for Long or Short positions) are still under 25. Also, wait till the ADX has reached 20 before entering into Trade

- Price breaking the Lower EMA (EMA26 in case of Long Positions) line while the EMA9 is still on top of EMA26