Discussion of article "Learn how to design a trading system by ADX"

 

New article Learn how to design a trading system by ADX has been published:

In this article, we will continue our series about designing a trading system using the most popular indicators and we will talk about the average directional index (ADX) indicator. We will learn this indicator in detail to understand it well and we will learn how we to use it through a simple strategy. By learning something deeply we can get more insights and we can use it better.

In this part, we will design a blueprint for each strategy to help us to create the trading system, and this blueprint will organize and set what we need the program or the system to do step by step.

  • Strategy one: Simple ADX System - ADX movement:

According to this strategy, we need the program every tick to check the current ADX value and the previous ADX value and then decide if the current ADX value is greater than the previous ADX value or not, if the current ADX is greater than the previous value then we need the system to appear a comment on the chart with "ADX is rising", "ADX Value is (n)" in a new line, and "ADX Value last is (n)" in another new line. If the current ADX value is less than the previous ADX then we need the system to appear a comment on the chart with "ADX is falling" If the current ADX is equal to the previous we need the system to do nothing.

The following picture is a blueprint for this strategy:

ADX movement blueprint

Author: Mohamed Abdelmaaboud

 

I just want to add condition

if adx is > 25 and  EMA 13 is crossing from lower price then buy.

if adx is > 25 and  EMA 13 is crossing from higher price then buy.

for your reference attaching image.

Files:
EURUSD.dmM3.png  39 kb
 
Thanks for this useful article. Very informative.
 
John Winsome Munar #:
Thanks for this useful article. Very informative.
Thanks for your comment.
 

Thanks for very useful article.

Kind Regards.

 
alakialakiani #:

Thanks for very useful article.

Kind Regards.

Thanks for your comment.

 
It is exceptionally straightforward and easily understandable. It has given me a deeper understanding of this indicator.
Thanks for 
the  article.
 
Jia Run Yuan #:
It is exceptionally straightforward and easily understandable. It has given me a deeper understanding of this indicator.
Thanks for 
the  article.

Thanks for your kind comment.

 

hello,

thank you for this interesting text.

Please note there is a small error in the drawing where you teach uptrend.

IMHO the text in the drawing should be "higher low" instead of "lower low".

See my screenshot.

Best Regards

Gunther

Files:
Knipsel.PNG  124 kb
 
gunther64 #:

hello,

thank you for this interesting text.

Please note there is a small error in the drawing where you teach uptrend.

IMHO the text in the drawing should be "higher low" instead of "lower low".

See my screenshot.

Best Regards

Gunther

Hello Gunther:

Thanks for your kind comment. You are correct.


Kind regards,

Mohamed

 
Hi. i just started learning about adx and dmi for couple months. and i wish there is an ea for this. since this is lagging indicator. maybe timeframe M15 is better suited. can you make one? where can i contact you for term and conditon? thank you
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