#2 Forex trading strategy (Parabolic SAR + ADX)
65
|
Forex Patterns & Probabilities: Trading Strategies for Trending & Range-Bound Markets (Wiley Trading)
Price: $47.62
List Price: $85.00 |
|
Beat the Forex Dealer: An insider's look into trading today's foreign exchange market (Wiley Trading)
Price: $32.48
List Price: $60.00 |
|
The FX Bootcamp Guide to Strategic and Tactical Forex Trading (Wiley Trading)
Price: $38.93
List Price: $70.00 |
|
Survive And Prosper In The Great Depression Of 2009-2012: A Step-By-Step Guide To Amassing A Fortune Trading Foreign Currencies
Price: $30.81
List Price: $39.00 |
The two indicators you will use here are found work effectively when used side-by-side. This Forex trading system is an another simple strategy.
You can be use this on any pair and any timeframe.
Indicators: ADX 50 (with +DI, -DI lines), Parabolic SAR default settings (0.02, 0.2)
Entry rules: You should sell when the "+DI" line is below the "-DI" line, and Parabolic SAR is giving a sell signal. When the "+DI" line is above the "-DI" line, the Parabolic sell signals must be ignored.
Entry rules: You shoule buy when the "+DI" line is above the "-DI" line, and Parabolic SAR is giving buy signal. When the "+DI" line is below the "-DI" line, the Parabolic buy signals must be ignored.
Exit rules: You should close the trade when "+DI" line and "-DI" lines crosses again.
Note: The higher the ADX is, the stronger the trend is. If ADX has reached 25, there is a good strong trend is in place.
Disadvantages:
ADX and Parabolic SAR are both follow-up indicators. Even though they complement each other very well, the weak factor here is ADX, because it can give out a signal, but change its mind later on. Once a signal is generated from ADX, it is advisable to wait for the current price bar to close to avoid false moves.
PrintShare it! — Rate it: up down flag this hub
- Forex strategies revealed
Website holds collection of Forex trading strategies and systems free for everyone to explore. Forex forum is open for strategies discussions. Welcome!








