Heyy all traders. . Hope everyone had a great week… So, I’ve implemented something new to my formula and it’s called ADX indicator… (Average Directional …) It helps predict the strength of a trend, and whether its a bullish or bearish trend, and helps identify the inversion / exhaustion of a trend. . So I first look for a strong trend identified by the ADX indicator plus recognize price action and candle formation… I also utilize fractals, RSI, CCI , and the 5 * 10 * 50MA . Ill then check and make sure for long the price is above all 3 MA … For a short, price would have crossed from above to under all MA. If the RSI is strong and the CCI isn’t over 120ish signaling a possible bearish reversal or more than -120ish for a bullish reversal candle then I would just find a candle to close as close to support on a pullback and trade long with the trend . If technicals are opposite I trade bearish once a candle closes as close to resistance as possible during a pullback for entry. I’ll usually implement no less than a 1:2, 2:3 risk:reward… The leverage that I will be using is 200… I feel it has potential to be a solid, reliable trading system. . If anybody out there could give me some advice or if anybody trades similar plz let me know the scoop. Thanx!!
I think it sounds overly complicated, frankly.
… by the way, I check most time frames and am logical with each time… and if anybody wants to check it out , I started a sort of artsy trade journal / music page on Instagram … @.subliminal.architect. follows appreciated… I want to dedicate all energy into learning and staying consistent in this game… This game of the highly intelligent and most cunning creative logical illogical hivemind of the global markets of currency with zero cap to how much profits could be potentially realized… It’s truly exciting and it is going to be a long journey but I am hungry . I want to live this life we have been given… I am motivated. I want ti win! Letsgetit!
Not so, I’m afraid: it helps to demonstrate the strength of a trend, not to predict it.
This isn’t a “mere semantic distinction”: it’s hugely conceptually important, to understand.
On the contrary, the ADX indicator is highly unusual, among indicators, in that it doesn’t distinguish between bullish and bearish trends (that can easily be seen from looking at the chart, though, or by adding +DI and -DI lines to the ADX, as some software packages now even do as a default).
Please don’t think that I’m trying to criticize, but it really isn’t a trading system at all: it’s simply an entry-method.
And a terribly, terribly complicated one, as Drekieyja rightly observes above.
I agree with both the replies above: it certainly isn’t a “strategy”, and it isn’t a “trading system” either - it’s just an entry-method (and a greatly over-complicated one).