Trading indicators – MACD(3,10,18), ADX(18) with DI- & DI+ lines
Forex pairs – all
TF (TimeFrame) – all
Broker – Any that offer MetaTrader 4 platform or other
Price – Free
How to install MT4 indicators >>
This trading system works with MACD and ADX indicator. MACD is one of the best indicators, it is very useful to search for divergence or continuation of the trend. MACD give you the signals for buy or short, as the ADX could be use to confirm this signal. But how really can use ADX to confirm the signal? So here is the example, when to buy or sell at the market.
When to make BUY entry?
If MACD give buy signal, we can confirm this signal with ADX. When +di is above -di, we can confirm that we will have upward movement. If +di is not above -di, but MACD give signals for buy, we should ignore this signals until +di is above -di. Then we will be sure that, we can make buy order.
When to make SELL entry?
IF MACD give signal for sell, but -di is not above +di, we must ignore this signal. It is very important -di to be above +di to confirm that the price will drop in the future.
Stop loss could be put, as you decide. You can use trailing stops to exit from the trade, this will give you more chance to make more profits, because the trend is your friend. The money management is very important for this trading system.