ADX, RSI & ATR strategy
nice, simple.
how long are you using this system ?
Hey I thought I'd share a strategy that has worked fairly well for me so far. Basically it uses a 14 day ADX and a 5 and 21 day RSI as its signals for entry. The system is based on the 1H GBPJPY but it might work with other pairs and time-frames.
Buy Signals
21 & 5 day RSI breaking thru 30 from below
ADX > 20 and rising & +DI rising above -DI
Close when 21 day RSI falls thru 70 having been above previously
Sell signals are just the opposite. There's also a weak buy/sell signal based on having a signal from the 5 day RSI confirmed by +/-DI signal but no signal from the 21 day RSI. ADX has to be above 20 and rising for all trades. This weak trade should be 1/2 the standard lot.
the ATR is used to set the stop loss which I set at 2-3 times the ATR value. This helps to keep you being stopped out of otherwise profitable trades. The last trade is half a lot and the green lines represent the stop losses for those trades. The first trade shows nicely how the ATR stop loss keeps us in a nice profitable trade. The entries are usually pretty accurate but the exits could do with some work. Any thoughts?
Thank you for the system. How do you get the day RSI unto the hour chart? Do you have a MTF RSI? Also in the last trade described above the 5 day RSI did not come from below 30? Why did you decide to take the trade?
Please, upload the images to forum.
Please, upload the images to forum.
How do I do that?
How do I do that?
The attach button doesnt seem to show on my reply. It should be right of the smilies icon and left of the undo icon right? Its not there.
The attach button doesnt seem to show on my reply. It should be right of the smilies icon and left of the undo icon right? Its not there.
Do 6/7 posts on this thread and wait near 20 minutes
nice, simple. how long are you using this system ?
The last year I have been trading a variety of systems based on ADX and a variety of other indicators. I stumbled on this about October last year and having been trading it since.
Here are the last three trades highlighted for you. The first was a clear sell signal from the ADX cross and the cross of both RSI-5 and RSI-21 below 70. I put in one lot at about 141.00. I then entered again at 141.00 based on what I thought was a forming double top. Finally I entered a weak sell (1/2 lot) at about 140.00 based on the ADX cross and a signal from the RSI-5 but not from RSI-21. I closed all three trades at around 136.00
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Hey I thought I'd share a strategy that has worked fairly well for me so far. Basically it uses a 14 period ADX and a 5 and 21 period RSI as its signals for entry. The system is based on the 1H GBPJPY but it might work with other pairs and time-frames.
Buy Signals
21 & 5 period RSI breaking thru 30 from below
ADX > 20 and rising & +DI rising above -DI
Close when 21 day RSI falls thru 70 having been above previously
Sell signals are just the opposite. There's also a weak buy/sell signal based on having a signal from the 5 day RSI confirmed by +/-DI signal but no signal from the 21 period RSI. ADX has to be above 20 and rising for all trades. This weak trade should be 1/2 the standard lot.
the ATR is used to set the stop loss which I set at 2-3 times the ATR value. This helps to keep you being stopped out of otherwise profitable trades. The last trade is half a lot and the green lines represent the stop losses for those trades. The first trade shows nicely how the ATR stop loss keeps us in a nice profitable trade. The entries are usually pretty accurate but the exits could do with some work. Any thoughts?