ADX EMA Strategy

26/10/2017 admin

I am well aware that many of you expect the fastest possible results and real profits from transactions on Binary Options. So I prepared a brief description of a strategy, which I find not only very effective, but also simple to use. It is based on the combination of two standard indicators available in each analytical program – ADX and EMA. We recommend uTrader, which is a regulated broker in the EU, and has an accounts in many local currencies.

ADX EMA strategy

To use this strategy we will use price charts with a one-minute time frame. The expiration time of the operation as the name suggests will be 60 seconds. As I just mentioned, we use two indicators here:

ADX

ADX (Average Directional Movement Index) – average directional index of movement. This is a standard indicator for the MetaTrader 4 platform. The default period for the indicator is 14 candles (in our strategy it will be 5 candles). The period is working, because the more investors see the signals, the better because of the accumulation of purchasing power.

ADX alone verifies only the occurrence of a trend when it exceeds the value of “20” and continues to rise and the strength of the trend. This is complemented by two additional lines – + DI (line of bullish movement) and -DI (line of bearish movement). Thanks to them, we receive confirmation of input or exit signals.

Moving Average

Moving Average – in our case, 28 periods. If we used only this indicator, closing or opening positions would occur at the moment of crossing the Exponential Moving Average by price.

ADX EMA-3 — Settings for Exponential Moving Average 28

CALL OPTION – GROWTH

In the case of a 60 second ADX EMA strategy we decide to open CALL option,when :

the green ADX line is located above the red line
price crosses and is above EMA 28
the body of the signal candle presents an upward trend
the signal is even stronger when the candle preceding the signal candle also has a bullish body

ADX EMA-4 — Price crosses the moving average, the green line ADX is above the red line, while the body of the signal is bullish.

PUT OPTIONS – FALL

In the case of the 60-second ADX EMA strategy, we decide to open the PUT option when:

the red ADX line is above the green line
price crosses and is below EMA 28
the body of the signal candle presents a downward trend
the signal is even stronger when the candle preceding the signal candle also has a bearish body