Mohammadhossein Yoosefiizad / Profil

Detect divergence

define level

Trading strategy based on ADX and ICHIMOKU indicators.
The ADX indicator consists of three parts: the main ADX index and the two lines + Di positive and -Di negative .
Our intention in using these two hunting indicators is to find the right entry point at the beginning of a process, not at the end.
Strategy 1 : enter the time of process fatigue
Strategy 2 : Enter at the start of a strong trend

The first strategy: For the first strategy, we consider the following parameters:
ADX Over Level
ADX DisCharge Level
Tenkan-Sen Line

In this strategy, we wait that trend to get tired after gaining power and be ready to go back (correct)
In this case, the ADX index is higher than the set ADX Over Level and now we are waiting for the Trend energy discharge, which we specify that level with ADX DisCharge Level. Trend power is almost gone when the ADX index drops below the ADX DisCharge Level. Now we are waiting for the intersection of +DI and -DI, and finally, the confirmation of the Ichimoku indicator by closing the candle above or below the Tenkan-Sen line.
Below we explain the conditions for entering the buying position as an example (for example, 5 minutes time frame).


BUY position:
ADX Over Level=55
ADX DisCharge Level=39
Di Tolerance =2
In the following example, we intend to enter the buying position. The previous trend is bearish and the ADX value is higher than the ADX Over Level and -Di is above +Di . Now we are waiting for the strength of the downtrend to decrease and enter the buying position at the right point. Then the ADX value decreases and goes below the ADX DisCharge Level. The power of the downtrend is almost gone. Now we are waiting for the line +Di to go above the line -Di. (Di Tolerance = 2)



Finally, we are waiting for the confirmation signal to enter the buy position by closing the candlestick above the Tenkan-Sen Line.Once the candlestick closes above the Tenkan-Sen Line, you can enter the buy position.

Sell position:
In the following example, we intend to enter the Sell position. The previous trend is bullish and the ADX value is higher than the ADX Over Level and the positive +Di is above the -Di negative. Now we are waiting for the bullish trend to weaken and enter the sell position. The ADX value decreases and goes below the ADX DisCharge Level. The strength of the uptrend is almost gone. Now we are waiting for the line -Di negative to go above the line +Di positive (Di Tolerance = 2).
Finally, we are waiting for the confirmation of the signal to enter the sell position by closing the candle below the Tenkan-Sen Line. Once the candlestick closes below the Tenkan-Sen Line, you can enter the sell position.

Strategy 2: Enter at the start of a strong trend
Required parameters:
ADX Over Level=55
Di Level =25
In the desired time frame, we are waiting for the process to gain power as follows. Passing the ADX index over the ADX Over Level and simultaneously increasing the value of Di from the ADX index, and finally entering the position at the top of this intersection by creating the intersection of the Tenkan-sen and Kijun-sen lines and closing the candlestick.

Note: To ensure entry into the position, support and resistance levels can be drawn and the position opened near them.
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Trading strategy based on ADX and ICHIMOKU indicators

Trading strategy based on ADX and ICHIMOKU indicators