Strategy based on ADX and Directional Movement indicators
ADX DI focuses on the crossing of +DI and -DI with rising ADX. A bullish cross of +DI over -DI coupled with strong ADX opens longs, while the opposite opens shorts. Positions close on a weakening ADX or opposite cross.
This combination helps avoid trading every DI cross by demanding confirmation from the ADX. The system aims to capture sustainable trends rather than short-term swings.
Entry Criteria: Signals based on ADX, ATR.
Long/Short: Both directions.
Exit Criteria: Opposite signal or stop.
Stops: Yes.
Default Values:
AdxPeriod = 14
AdxThreshold = 25m
AtrMultiplier = 2m
CandleType = TimeSpan.FromMinutes(5)
[*]Filters:
Category: Trend
Direction: Both
Indicators: ADX, ATR
Stops: Yes
Complexity: Basic
Timeframe: Intraday (5m)
Seasonality: No
Neural Networks: No
Divergence: No
Risk Level: Medium