ADX Trading System

Trading setup


  • Trade on 15 minutes chart (can be traded on any chart except 1-min)

  • 9 EMA applied to the close

  • ADX (14) applied to the close and set a level of 20. Color: ADX line: Red, +DI line: Blue, -DI line: Dark violet
 
Trading Rules


Entry Rules


Long entry rules: 

  • Price is coming up from below 9 EMA. Candle closes above 9 EMA

  • ADX +DI value is greater than 20

  • ADX -DI value is lesser than +DI
 
Short entry rules:


  • Price is coming down from above 9 EMA. Candle closes below 9 EMA

  • ADX -DI value is greater than 20

  • ADX +DI value is lesser than -DI


Exit Rule


Long Exit rules: 


  • ADX line heading down or

  • Candle closed below 9 EMA or 

  • ADX +DI value is lesser than -DI

Short Exit rules: 


  • ADX line heading down or

  • Candle closed above 9 EMA

  • ADX -DI value is lesser than +DI
    •  
     
Stop Loss


  • 20 pips


Take Profit


  • 20 pips or

  • We can take profit when we exit according to our exit signal.  



Long Trade Example: 




Short Trade Example:




You must test this system thoroughly through back testing and by trading it live on a demo account for at least 2 months. After two months of testing if you find it profitable, only then use it on a real account. 


Remember one thing, I’m not responsible for your losses. 

Don't forget to follow me on twitter @imakm247 
Location: Bangladesh

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