Strategy for EMA, PSAR, ADX

This trading system is based on 3 indicators - EMA, ADX, PSAR. It is simple enough, but nevertheless requires the clear fulfillment of all the rules for the conclusion and maintenance of transactions. The strategy uses all standard indicators, which are installed by default in any trading terminal Metatrader 4:

- 3 EMA moving averages;
- ADX indicator;
- Parabolic indicator - PSAR.

Trading on the strategy is conducted on the interval H4 and on any currency pair.

Parameters of the strategy indicators

1. On the 4-hour price chart there are 3 exponential moving averages EMA:
a) 12-period exponential moving average EMA on Open, color chosen red.
b) 5-period exponential moving average EMA on Close, its color is selected white.
c) 9-period exponential moving average EMA on Close, its color chosen is yellow.

2. Indicator Parabolic SAR with standard settings.

3. ADX indicator (Average Directional Movement Index), period 9 to Close, +ID - selected green, -ID - selected red.

Rules of the strategy

In order to make a sale, it is necessary to:

1) Wait for the first time the price has crossed two EMAs (red and white) downwards and for the second bar to appear to confirm this crossing. The EMA(12) should be above the EMA(5).
2) point of Parabolic SAR indicator should be located above the price
3) The ADX indicator line and the -ID line must be above the +ID line.

If all 3 conditions are met? We enter the market to sell.

Original safety stoploss order The stop loss is set at 55-70 pips, this stop loss was obtained as a result of an experiment with this strategy. But you can also put it above the local high.

After the price has moved in the profitable direction, more than 30-40 pips, we move the order to the area of BreakevenAnd then you can use a trailing stop, the value of which depends on the selected currency pair and the volatility of the market.

Entering the market on a buy signal in this trading strategy is carried out according to the opposite rules.