Two MA’s and ADX Forex Trend following Strategy
It is a swing trend following forex strategy that uses moving average crossover. It works on 1 hour and 4 hour timeframe and applicable in all currency pairs.
Forex  Indicators:
- Moving average (MA smoothed) with period 9 (MA 9).
- MA with period 21 (MA smoothed 21).
- Average Directional Movement Index default setting (ADX 14). A level of 33 is added.
Rules for Two MA’s ( moving averages smothed) and ADX
Buy Entry:
- MA 9 must cross above the MA 21 and the ADX is greater than 33.
- Enter when the price comes back down to touch the MA 9.
- Set the initial stop loss 15 pips below the MA 21 and after 30 pips in gain move stop loss at the entry price (Time frame 60 min- for time frame240 move initial stop loss after 45 pips in gain)
- Profit target with ratio 1:2 stop loss or exit position when MA cross in opposite direction.
Sell Entry:
- MA 9 to cross below the MA 21 and the ADX is greater than 33.
- Enter when the price comes back down to touch the MA 9.
- Set the initial stop loss 15 pips above the MA 21 and after 30 pips in gain move stop loss at the entry price (Time frame 60 min- for time frame240 move initial stop loss after 45 pips in gain).
- Take profit with ratio 1:2 stop loss or exit position when MA cross in opposite direction.
This trading system is also good for trading with Options and Binary Options.
Buy Call or Sell Put Options
- Wait MA 9 cross above 21 MA and the ADX is greater than of 33.
- This event is an alert for Buy Call or Sell Put.
- Draw on the chart a line at the level of the previous High swing, this level is the strike or the fixed price.
- When the price comes back down to touch the MA 9 Buy Call or Sell Put with the strike at the level of the previous high.
Buy Put or Sell Call Options
- Wait MA 9 cross below 21 MA and the ADX is greater than 33.
- This event is an alert for Buy Put or Sell Call.
- Draw on the chart a line at the level of the previous Low swing, this level is the strike or the fixed price.
- When the price comes back down to touch the MA 9 Buy Put or Sell Call with the strike (fixed price) at the level of the previous low swing.
Recommended MT4 Brokers
XM Broker
- Free $50 To Start Trading Instantly! (Withdraw-able Profit)
- Deposit Bonus up to $5,000
- Unlimited Loyalty Program
- Award Winning Forex Broker
- Additional Exclusive Bonuses Throughout The Year
>> Sign Up for XM Broker Account here <<
FBS Broker
- Trade 100 Bonus: Free $100 to kickstart your trading journey!
- 100% Deposit Bonus: Double your deposit up to $10,000 and trade with enhanced capital.
- Leverage up to 1:3000: Maximizing potential profits with one of the highest leverage options available.
- ‘Best Customer Service Broker Asia’ Award: Recognized excellence in customer support and service.
- Seasonal Promotions: Enjoy a variety of exclusive bonuses and promotional offers all year round.
>> Sign Up for FBS Broker Account here <<
Click here below to download: