Dear traders, before you opt for an advanced trading method such as the CAMMACD and SWAT, you might want to try a basic trading method that should open the door to Forex trading – the beautiful and exciting world of making pips. Today’s beginner strategy is called The Daily ADX and is solely traded on a Daily time frame. That makes it ideal for beginners and traders with a part-time job.
- MACD (3,9,16)
- ADX(16) with + DI and – DI lines. The + DI line is blue, while the – DI line is red.
- Any pivot point indicator available set in the weekly timeframe
Buy Trade: MACD should go above 0 line and +di should be above -di. You open a buy trade when both conditions are fulfilled.
Sell Trade: MACD should give a sell signal and – di should be above +di. You open a sell trade when both conditions are fulfilled.
Target Price: Next Pivot level. For pivot points, we used the Admiral Pivot set on the weekly timeframe.
Stop Loss: 10 pips below the last swing low.
Here is the example of a long trade
And the example of a short trade
Of course, before you make a live trade you should practise on a DEMO account first. This strategy can be a great entry to Forex trading. We wish you success on your journey.