Implementation of strategy - ADX + Volume. Enter trades when ADX is above threshold with above average volume. Direction determined by DI+ and DI- comparison.
High ADX denotes a strong trend and volume spikes confirm commitment. Entries are made when both indicators show strength together.
Great for catching energetic breakouts. A stop based on ATR keeps exposure in check.
- Entry Criteria:
- Long: ADX > AdxThreshold && Volume > AvgVolume
- Short: ADX > AdxThreshold && Volume > AvgVolume
- Long/Short: Both
- Exit Criteria: Trend weakens below threshold
- Stops: ATR-based using StopLoss
- Default Values:
- AdxPeriod = 14
- AdxThreshold = 25m
- VolumeAvgPeriod = 20
- StopLoss = new Unit(2, UnitTypes.Absolute)
- CandleType = TimeSpan.FromMinutes(5).TimeFrame()
- Filters:
- Category: Breakout
- Direction: Both
- Indicators: ADX, Volume
- Stops: Yes
- Complexity: Intermediate
- Timeframe: Mid-term
- Seasonality: No
- Neural Networks: No
- Divergence: No
- Risk Level: Medium