ADX & Momentum: Classic Trend Scalping

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ADX & Momentum: Classic Trend Scalping

This is a classic trend-following strategy tailored for the M5 timeframe. It filters trades by trend strength using the ADX (Average Directional Index) and confirms the entry direction with the Momentum indicator, making it suitable for both novice and experienced scalpers.

Strategy Profile

Timeframe

M5

Pairs

Majors (EUR, GBP)

Indicators

ADX + Momentum

1. Indicator Setup

Apply the following settings to your chart:

  • ADX: Period 14 (with D+ and D- lines visible). Mark the level 25.
  • Momentum: Period 14. Mark the level 100.

2. Long Entry (Buy) Rules

  1. Trend Strength: The ADX main line is above 25.
  2. Direction: The D+ line is above 25 AND above the D- line.
  3. Momentum: The Momentum indicator is above 100.
ADX Momentum Scalping Buy Strategy
Figure 1: Buy Signal – Strong ADX trend confirmed by Momentum > 100

3. Short Entry (Sell) Rules

  1. Trend Strength: The ADX main line is above 25.
  2. Direction: The D- line is above 25 AND above the D+ line.
  3. Momentum: The Momentum indicator is below 100.
ADX Momentum Scalping Sell Strategy
Figure 2: Sell Signal – Strong bearish ADX trend confirmed by Momentum < 100

Trade Management

  • Take Profit: 14-16 points.
  • Stop Loss: 5-7 points.
  • Optional: Use EMA 55 as an additional filter (Buy only above, Sell only below).

Catch the Momentum: Trade trends with precision and get cashback on your scalping volume.

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