''My Trading Strategy With MACD and ADX 21 5 2017

My Trading Strategy with MACD and ADX (Forex Education) BY ROGER

BAETTIG

ON 08/31/10 AT 10:32 AM

In my last week article Forex Trading with Fractals and ADX I explained what the ADX indicator is and how to use it for your trading. In some other articles I explained what the MACD is and how you can set up trading strategies in comination with other indicators! Trading with MACD Today I want to share with you a comination etween the MACD indicator and the ADX. I use the standard setups for the MACD "#$%$&%'( and for the  ADX "#)( as well.

Buy in an uptrend * The MACD indicator gi+es a uy signal. * D, crossed the D* line. Therefore the D, line is ao+e the D* line. * The ADX line should e rising.

Sell in a downtrend * The MACD indicator gi+es a sell signal. * D* crossed the D, line. Therefore the D* line is ao+e the D, line. * The ADX line should e rising.

Stop loss -se it as per your risk appetite.

Exit -se trailing stops to exit ecause it will allow you to capture maximum profit. ne thing which is important while using this system is that you should trade with proper money management techni/ues.

Calculation The Average Directional Index % or ADX% was de+eloped y 0. 1elles 1ilder to determine trend forces% whether the trend will grow on or will gradually lose its positions. This indicator lets analy2e the market tendencies and make trading decisions in the Forex market. In fact% ADX relates to the class of oscillators% which changes positions in a range from 3 up to #33. Though the indicator4s fluctuations are in a range from 3 and up to #33% it seldom goes o+er a point of &3. If the +alue is lower than $3 demonstrates a weak trend% if the +alue is o+er )3 shows a strong trend. 5osition ao+e )3 indicates oth strong descending% and a strong ascending trend. 1 variant - calculation ! Calculation of positi+e and negati+e directed mo+ement "Directional Mo+ement or DM( * +DM j and -DM j If 6igh 7 "a maximum of a current ar(8 6igh 7*# "a maximum of the pre+ious ar(% That ,DM 7 9 6igh 7 * 6igh 7*#% differently ,DM 7 9 3 If :ow 7 "a minimum of a current ar( ; :ow 7*# "a minimum of the pre+ious ar(% That *DM 7 9 :ow 7*# * :ow 7% differently *DM 7 9 3 If ,DM 78 *DM 7% That *DM 7 9 3 If *DM 78 ,DM 7% That ,DM 7 93 If ,DM 7 9 *DM 7% That ,DM 7 93% *DM 7 93 Determination of the true range * Tote! In most cases module =6igh * :ow= will e maximal on forex in asence of price reaks. Determination of the indicator of a positi+e direction and the indicator of a negati+e direction * +DI jand -DI j "Directional Index(. ,DI 7 9 ?xponential Mo+ing A+erage7 ",@DI% >( *DI 7 9 ?xponential Mo+ing A+erage7 "*@DI% >( 1here% if T