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