Forex ADX Power

- Timeframe: I use it on 4 hours, feel free to use it on smaller timeframes as well
- Currency Pair: Any

- Indicators: EMA9 and EMA26 and DMI (Directional Movement Indicator with ADX)
- DMI Settings: Draw a horizental line at 25 to watch for the crossovers of DI+ or DI-
- ADX Settings: Ignore signals where ADX is lower 20





GO LONG WHEN:
- EMA9 has crossed over EMA26

- DI+ >= 25
- ADX >= 20
- ADX is in between DI+ and DI-

EXIT LONG WHEN:
- EMA26 has crossed EMA9 AND
- DI- is higher than DI+

GO SHORT WHEN:
- EMA26 has crossed EMA9
- DI- >= 25
- ADX >= 20
- ADX is in between DI- and DI+
EXIT SHORT WHEN:
- EMA9 has crossed EMA26 AND
- DI+ is higher than DI-

WHAT TO IGNORE:
- While in Long Position: DI+ and DI- Cross-overs while the EMA9 is still on top of EMA26
- While in Short Position: DI+ and DI- Cross-overs while the EMA26 is still on top of EMA9
- While searching for Trading Opportunities: The EMAs has crossed over but the DI+ or DI- (depending on whether you're looking for Long or Short positions) are still under 25. Also, wait till the ADX has reached 20 before entering into Trade
- Price breaking the Lower EMA (EMA26 in case of Long Positions) line while the EMA9 is still on top of EMA26

----- SBJ ---- by; N.Ghangro ----

Forex ; CCI Divergence Trading system

Today I want to share with you a very simple trading system that is based entirely on CCI divergence. CCI is a pretty useful indicator in itself but it's even more effective when you trade divergence patterns.
In trading circles divergence is basically where the price makes new highs but the indicator in question, ie the CCI in this case, fails to make new highs. Similarly in a downward trend the price is making new lows but the indicator is failing to make new lows.
These divergence patterns indicate that a reversal is about to take place because the trend is starting to run out of momentum, and they are generally very strong signals.
So getting back to the CCI divergence trading system, I recommend you plot the price chart along with two CCI indicators - the CCI (10) and CCI (60). You may like to try other settings but I find these work extremely well.
Then you want to wait for a divergence pattern to emerge on BOTH of these indicators. You can use just one indicator but I recommend using both of them if you want to identify the very best signals.
To give you an example there was an excellent set-up on the GBP/USD pair yesterday morning (on the 15 minute chart). You can see from the chart below that although the price didn't actually trade lower, it did form a perfect double bottom formation (indicated by the grey vertical line), and yet when it did so both the CCI indicators failed to make new lows, which was a very positive sign that a reversal was about to take place, and which turned out to be correct in this case.



As with all trading systems this simple CCI divergence system isn't foolproof but it can provide you with some excellent signals on occasions.

---- SBJ ---- by; James W ----

Forex Momentum

Developed by Donald Lambert, the momentum indicator measures the difference between the current market price of a currency pair and the price of the same currency pair a certain number (n) of days ago.

Trading Momentum is very simple. Buy a currency pair when Momentum crosses from below the zero line to above or sell when Momentum crosses from above the zero line to below; however, to achieve better trading results from Momentum, below you will find the trading rules for use in both trending and ranging currency markets.

Popular trading signals from Momentum

I. Ranging Markets
• Go Long when the Momentum indicator falls below the oversold level and then crosses the zero line from below;
• Go Short when the Momentum indicator rises above the overbought level and then crosses the zero line from above.



II. Trending Markets
Is the market trending or not? First, measure the strength of the trend using a trend-confirming indicator such as ADX or draw a simple trendline to find out.
The Momentum indicator tends to stay above the zero-line during an up trending market and below the zero-line in down trending markets.

Take trading signals only in the main direction of the trend!
• Up trending market: Go long when the Momentum indicator falls below the zero-line and then turns back above;
• Down trending market: Go short when the Momentum indicator rises above the zero-line and then turns back below.

Please remember that Momentum, as with all other technical indicators should not be used by itself but should be combined with other indicators / studies to make a complete forex trading system.

------ SBJ --- by; Pete.V ------

FOREX - 4 Tech Indicators

If you are new to forex trading, do you know which types of technical indicators are for what kinds of usage? And if you are already an experienced forex trader, are you using the correct combinations of technical indicators to help you profit consistently in the forex market If w:you are still not sure, we'll discuss the following 4 different types of forex technical indicators below
1. Trend Indicators - Also known as Directional Indicators. I have always reminded my students, 'Trend is your best friend and always trade in the direction of a trend'. A forex trend may be quite subjective to different traders as they may have different views on trendiness. So those trend indicators out there in the forex market can help traders detect the starting and ending of a trend. Some of the more popular trend following indicators includes MACD (Moving Average Convergence Divergence), MA (Moving Average), Parabolic SAR. Depending just on trend indicators is not enough, you may need Momentum Indicator(s) to enter and/or exit a trade.
2. Momentum indicator - Also known as Strength Indicators. It is described as the speed of a move in price over a period of time. They are oscillators which are able to indicate whether the forex market is in the overbought or oversold regions. If they have risen to the overbought zone, there is high possibility that the price will be going down, and if they have fallen to oversold zone, there is high possibility price will be going up. Some of the more popular oscillating indicators in forex trading include Stochastic, Momentum, RSI (Relative Strength Index), CCI (Commodity Channel Index).
3. Volatility indicators - Also known as Bands Indicators. Often, a change in volatility will lead to a change in price. Therefore, we can see how active the forex market is just by looking at the price ranges. You may want to trade when there is a dramatic change in price movements, which suggests that the market is actively trading forex
. Some of the more popular Volatility Indicator includes BB (Bollinger Bands), ATR (Average True Range), Envelopes

4. Volume indicator - They are used to show the volume of forex trading and are useful to confirm the direction of a trend, a reversal or a breakout. Price movements increase when the volume increases, low volume may warn of a reversal in a forex trade. If a currency pair trades from a narrow range and then breaks out on high volume, this is a strong signal and may suggest a breakout. Some of the more widely used Volume Indicator includes Demand Index, Chaikin Money Flow, Money Flow Index, Ease Of Movement, OBV (On Balance Volume).
I'm sure that after the above discussions, you should have a better idea of the different types of forex technical indicators. While they can greatly help you in technical analysis and make trading decisions, I want to stress that NO forex indicators is holy grail. The
indicators are just a confirmation of history and a guide for the future. Most importantly, you need to know the right combination of the forex technical indicators to get you profitable consistently in the long haul. You can find a forex trading system which has a very good combination of indicators in my forex ebook which I give for FREE. Good trading to all.

------ SBJ ---- By; Daniel S -----

Forex EMA and ADX Strategy

Currency: any
Time frame: 1hr
Indicators: 5EMA(close), 6EMA(open), [ADX(14) at 20mark]
Rule: Enter a long position when the 5EMA crosses the 6EMA up and the width difference between them is a pip and the ADX must be over it's 20mark.



For those conservative traders, you could add 55EMA and 89EMA to know the trend and only enter a position according to the trend,that's enter long when the 55EMA is over the 89EMA and all other parameters are in place as i have stated above.

--- SBJ --- by; Egudu ------