ADX With Ichimoku Forex Trading Strategy
To be able to forecast trading prices, it is more suitable to deploy a technical strategy that can be used on more than one timeframe and asset.
The ADX with Ichimoku forex trading strategy is designed to predict not only future currency pair prices but also stocks and gold.
It is a delight for just about any trader to have this versatile strategy in his trading arsenal.
MetaTrader4 Indicators: Alternative_Ichimoku.ex4 (default setting), ADX_MA_BO.ex4 (Inputs Variable Modified; Ma_Period=20)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day
Recommended Trading Sessions: Any
Currency Pairs: Any pair
Buy Trade Example
Long Entry Rules
Initiate a buy entry if the following indicator or chart pattern gets displayed:
- If the blue dots of the ADX_MA_BO custom indicator gets aligned somewhat below the candlesticks as depicted on Fig. 1.0, price is said to be pressured to the upside i.e. a buy entry is favored.
- If the light pink cloud of the Alternative_Ichimoku.ex4 custom indicator gets displayed somewhere below the price bars as shown on Fig. 1.0, the sentiment in the market is said to be bullish, as such a buy signal is appropriate.
Stop Loss for Buy Entry: Place stop loss 3 pips below short-term support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions are in place:
- If while a bullish trend is ongoing, the ADX_MA_BO custom indicator forms a red dot, it is an indication of weaning bulls power, hence an exit or take profit is advised.
- If 5 consecutive candlesticks falls to close within the light pink cloud of the Alternative_Ichimoku.ex4 custom indicator, the current bullish sentiment is said to be halting, hence an exit or take profit will suffice.
Sell Entry Rules
Enter a sell order if the following takes center stage:
- If the red dots of the ADX_MA_BO custom indicator gets aligned somewhat above the candlesticks as shown on Fig. 1.1, price is said to be pushed to the downside, hence a trigger to sell the designated currency pair.
- If the light steel blue cloud of the Alternative_Ichimoku.ex4 custom indicator gets displayed somewhere above the candlesticks as illustrated on Fig. 1.1, the sentiment in the market is said to be bearish, thus a sell trigger is looming.
Stop Loss for Sell Entry: Place stop loss 3 pips above short-term resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following holds sway on the activity chart:
- If while a bearish trend is ongoing, the ADX_MA_BO custom indicator forms a blue dot as shown on Fig. 1.1, it is an indication of halting bears power, hence an exit or take profit w.
- If 5 consecutive candlesticks rises to close within the light steel blue cloud of the Alternative_Ichimoku.ex4 custom indicator, the ongoing bearish sentiment is said to be diminishing, hence an exit or take profit is appropriate.
Sell Trade Example
About The Trading Indicators
The Alternative_Ichimoku.ex4 custom indicator was designed as an alternative to the well-known indicator Ichimoku Kinko Hyo.
The indicator is used to measure momentum in line with likely zones of support and resistance.
The ADX_MA_BO custom indicator is an enhanced Average Directional Index (ADX) that is trend following with integrated smoothing filter.