Strategy that combines ADX (Average Directional Index) for trend strength and Stochastic Oscillator for entry timing with oversold/overbought conditions.
ADX highlights trend strength while Stochastic pinpoints pullbacks. Long or short signals appear when momentum turns while ADX stays high.
It suits traders who combine trend following with oscillator timing. Protective ATR stops help control drawdowns.
Entry Criteria:
Long: ADX > AdxThreshold && StochK < StochOversold && Bullish
Short: ADX > AdxThreshold && StochK > StochOverbought && Bearish
[]Long/Short: Both
[]Exit Criteria:
Exit when ADX < AdxThreshold
[]Stops: Percent-based at StopLossPercent
[]Default Values:
AdxPeriod = 14
AdxThreshold = 25m
StochPeriod = 14
StochK = 3
StochD = 3
StochOversold = 20m
StochOverbought = 80m
StopLossPercent = 2.0m
CandleType = TimeSpan.FromMinutes(5).TimeFrame()
[*]Filters:
Category: Mean reversion
Direction: Both
Indicators: ADX, Stochastic Oscillator
Stops: Yes
Complexity: Intermediate
Timeframe: Mid-term
Seasonality: No
Neural Networks: No
Divergence: No
Risk Level: Medium