Here's a new one that you can try.

[FXGuy2000]

Hi all,

Over the past few days I came across this indicator which I found quite impressive. And works quite well with the ADX indicator.

I've attached a 4hr USD/CAD chart.

I'm probably going to get attacked/harrassed with this one too saying how I haven't explained things well and people start calling me a fraud because they can't understand it, or that I don't understand the indicator - fair, I don't, but I don't really care, this is all about finding patterns that emerge, and profit from it, and that's all. But sod them. I'll do my best to show you what I mean and hope that you can see that this one has some potential to pick out some pretty good moves in the market.

This example as mentioned, shows the currency pair USD/CAD, but I don't see any reason why this can not be used on any currency pair and on any time frames.

I've attached the default ADX indicator from the MT4 platform, and left the settings as they are for this indicator, however, I've drawn a horizontal line at the 20 level for visual guidance.

I've also attached a custom indicator to this post too, called: Var Mov Avg.

Ok, here's what I've done.

First, I check to see if the ADX line AND the +DI line have hit the mark of 20. If it has, I don't open the LONG trade yet, I check the Var Mov Avg indicator to see if there are yellow dots/upward bars. Each of these dots represent a bar period on the 4hr chart. So as you can imagine it will take some while before the execution of this trade takes place. ie. I've set a time as to when to buy this trade, and that's when 4 yellow dots have appeared on the Var Mov Avg custom indicator, which in this case will be 16hrs (long time to wait, I know, but as I say, you can use any time frame you want) before the trade opens.

My next rule would be to wait for the magenta dot (an downward bar) to appear, as soon as it does, I'd close that long trade. EDIT: (forgot to add However, what I've noticed is, that +DI line to be taken into consideration as well, if this falls below the mark of 20, from what I have seen in manual backtesting the dot has changed color. So even if I see a dot changing color while the +DI line hasn't reached the mark of 20, that I should keep the trade open. I'm still in deep search as to which rule I should take on to close the trade for maximum pip gains.(I haven't updated the original chart, but I'll add others as I go along and try to get them as precise as possible for illistration purposes).

Then the process starts again. IF there is another ADX & +DI confirmation at the 20 level and there are 4 yellow dots in a row after that confirmation, then I'd buy again.

However, if there is a confirmation of the ADX & -DI line hitting the mark of 20, I follow the same rule, wait for 4 dots of the same color (magenta) before executing a SHORT trade. Once those 4 dots have appeared, I'd enter short there.

To close the trade, I'd wait for a yellow dot to appear or wait for the -Di line to fall below 20...

It's simple as that really...

This is still a work in progress. I came up with this idea on Saturday 29th april - it still needs some work until I can decide which rule for closing I should take as it can get quite confusing to decide which one to take on. But until that time I'll use human instincts to decide which is best.

Now, On the chart I have shown white arrows, these are at the point at which the trades are opened. I have shown some blue arrows, these are at the point in which that trade previously opened, closes.

I've also shown a green arrow, if you look closely, you'll notice that even though we got a confirmation from the ADX and +DI at the mark of 20, there wasn't 4 yellow dots after that confirmation from the ADX indicator, so we decide not to enter here.

The red and dark turquoise vertical lines are the long and short trades beginning to end.

Any way, I hope this comes of some use to you.

[FXGuy2000]

Just a little update, the chart explains what it is.

But in short. I initially set myself a rule of one color dot of the opposite color to appear before closing the trade. This is the first time I've traded this live since divising this system over the weekend (obviously I couldn't test it in a moving market since nothing was happening...lol ). So now I will wait for one complete bar of the opposite color to appear, then see what the second bar's color is, if it's another yellow dot while I'm short on a trade, I'll exit on the 2nd yellow dot. This should eliminate any premature closings of good trades, as you can see by the chart, if I stayed in, I could of pocketed 47 pips on the 5 minute chart.

I'm going to test the 5 minute chart for a while,then move on to the higher ones later.