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ADX and DeMarker scalping FOREX strategy

by tonpop: I use this combination of indicators to find an entry in 5 min charts of EURUSD (it can be applied on other majors). Premise of this scalping forex strategy is pretty simple. ADX help me to identify current market direction. Once I have found it, I enter the trade based on DeMarker signal. I used this setup for about four months almost every day and it works very well for me. The key here is to be able to exit the position immediately after you notice price reversal.

Used forex indicators

Forex strategy rules

ADX and DeMarker scalping FOREX strategy

SELL:

Main DeM line trending above 10 signalizing sufficient momentum to confirm trend. ADX+(green) trending below ADX- (red). This will signalize downtrend and we will enter short trades only.

Signal: DeM rising above 0,7 line. We enter on bearish candle closing below previous candle low. Stop loss is placed above the high of signal formation.

  • Position liquidation: ADX+ crossing ADX- upwards (trend reversal).

BUY:

ADX and DeMarker scalping FOREX strategy

Main DeM line trending above 10 signalizing sufficient momentum to confirm trend. ADX+(green) trending above ADX- (red). This will signalize uptrend and we will enter long trades only.

Signal: DeM falling below 0,3 line. We enter on bullish candle closing above previous candle high. Stop loss is placed below the low of signal formation.

  • Position liquidation: ADX+ crossing ADX- downwards (trend reversal).

Notes: I enter more than one position in the same trend. However, it is necessary to protect profits all of currently opened positions by adjusting stop loss.

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“Trading FOREX since 2006. Full time trader and web developer since 2013. My two biggest hobbies are trading and web development. In TheForexKings I managed to connect both of them. Even after 12 years of trading I still have the same passion for the market as at the beginning. The aspect I enjoy the most : development and testing of new ideas.” 

 

Only in 2016 - 2017 we have created more than 400 forex strategies. During this period we have also developed and published +200 MT4 Expert advisors based on those strategies. We are dedicated to provide you with viable and complete trading systems that have thrived in extensive historical testing. We want to give you complete and transparent trading solutions, that once mastered ,will set you financially free. We want to give you a fighting and winning chance in the market. ” 

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