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My Trading Strategy with MACD and ADX (Forex Education).

In my last week article <a href="http://www.ibtimes.com/articles/20100715/forex-trading-with-fractals-and-adx-forex-education.htm">Forex Trading with Fractals and ADX</a>&nbsp;I explained what the ADX indicator is and how to use it for your trading.

In some other articles I explained what the MACD is and how you can set up trading strategies in combination with other indicators:

<a href="http://www.ibtimes.com/articles/20100708/trading-with-macd-forex-education.htm">Trading with MACD (Forex Education)</a><br> <a href="http://www.ibtimes.com/articles/20100714/my-forex-trading-strategy-with-macd-divergence-forex-education.htm">My Forex Trading Strategy with MACD Divergence (Forex Education)</a><br> <a href="http://www.ibtimes.com/articles/20100708/my-forex-trading-strategy-with-macd-stochastics.htm">My Forex Trading Strategy with MACD & Stochastics (Forex Education)</a>

Today I want to share with you a combination between the MACD indicator and the ADX. I use the standard setups for the MACD (12,26,9) and for the ADX (14) as well.

<h3>Buy in an uptrend</h3>

- The MACD indicator gives a buy signal.<br> - D+ crossed the D- line. Therefore the D+ line is above the D- line.<br> - The ADX line should be rising.

<img class="hand" onload="resizeImg(this,480)" src="http://img.ibtimes.com/www/data/articles/full/2010/07/28/15275.png" alt="" />

<h3>Sell in a downtrend</h3>

- The MACD indicator gives a sell signal.<br> - D- crossed the D+ line. Therefore the D- line is above the D+ line.<br> - The ADX line should be rising.

<img id="15276" class="imgNone" src="http://img.ibtimes.com/www/data/articles/full/2010/07/28/15276.png" alt="" width="598" />

<h3>Stop loss</h3>

Use it as per your risk appetite.

<h3>Exit</h3>

Use trailing stops to exit because it will allow you to capture maximum profit.

One thing which is important while using this system is that you should trade with proper money management techniques.

Happy trading,

Regards,<br> Roger

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Publication:International Business Times - US ed.
Article Type:Brief article
Geographic Code:1USA
Date:Jul 28, 2010
Words:319
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