ADX Indicator Strategy

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This is the second strategy I’m going to share with you. All of these strategies are created by me with combining different indicators and strategies together. You might need some custom indicators and most of the time I use Meta Trader 4 Platform and IQ Options Platform for demonstration. ADX indicator strategy is one of my profitable methods of making profits.

If you are new to Forex and Binary Options. Start by reading this article how I came up.

How To Calculate Win Rate Of ADX Indicator Strategies

Before we go into ADX indicator strategy, Let me explain how I calculated the win rate of these ADX indicator strategies. First, I plot possible entries where all the strategy conditions are true. Usually, I draw 50 possible entries and I count winning trades out of those 50 trades. And take it as a percentage.

Although this strategy is based on the Average Directional Movement Index (ADX) you need a custom indicator for this strategy. It’s called ADX Smoothed. You can Download it from This Google Drive Link

Okay, Let’s Move to Chart Setup. Most of the Binary Options Strategies I use time frame as 5 minute and same expiry time. You can see more information about strategy rules from this post

Indicators used: Average Directional Movement Index (ADX_Soothed)
Time Frame: 5M
Expiry Time: 5M
Entry: 2-3 Seconds Before Previous Candle Expiry

You need to set up your charts like below ;

ADX Indicator
ADX_Smoothed

ADX_Smoothed Settings

Period : 14
Alpha 1 : 0.25
Alpha 2 : 0.33
Price type : 0

Rules

First it has to form a trend by crossing D+ with D- lines. And we wait for ADX Line ( D line ) to Cross D+ or D- From Above. Once we get confirmation we trade in the opposite direction. This is a Reversal Strategy. You may not get lots of signals per day. Also, you can use EMA for Confirmation. I do not recommend to use DCA or Martingale for loss recovery.

See the chart Below For Possible Entries

ADX Indicator
ADX Strategy

Disclaimer

NOTE: This article is not about investment advice.
www.fbforex.com/disclaimer

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