Trading strategy based on MACD, EMA and ADX for the hourly chart

Marketplace: ;
Trading Indicators: EMA(7 and 12), ADX(14) and MACD(12, 26, 9), Fibo;
Timeframe: H1;
Strategy: trending;
Protective orders: StopLoss, TakeProfit, TrallingStop.

This trading strategy is another system using popular indicators that are available in any MetaTrader4 trading terminal: moving averages EMA, ADX and MACD.

Rules of the trading strategy

So, set the following indicators on the hourly chart of the selected currency pair :

- exponential moving average EMA with period 7;
- exponential moving average EMA with period 21;
- ADX indicator with a period of 14;
– MACD indicator (12,26,9).

Buying deal opens after the moving average EMA(7) has crossed the moving average EMA(21) and the ADX indicator has broken through the level 25 from below and continues to be above it, and the MACD indicator indicates a bullish trend.

A bargain for sale is the exact opposite.

We should also closely monitor the ATR readings, which should not go out of the described zone, as well as the MACD indicator: if it consolidates, it is worth being out of the market.

Figure 1. Rules trading strategy .

Rules for exiting a trading position

An order in the market is closed as soon as the average EMA(7) crosses the average EMA(21) in the opposite direction. Trailing stop can be used to secure a trading position (parameters depend on the selected currency pair).

Stop Loss set for local minima or important Fibonacci levels.

Take Profit - to local lows or highs, or also Fibonacci extensions.