Daily Breakout: Moving Average Crossover & ADX
This daily strategy combines the trend-following capability of Moving Average crossovers with the volatility filter of the ADX indicator. By requiring the ADX to be above a certain threshold, it ensures that you only trade when the market has sufficient energy to sustain a move.
Strategy Profile
Timeframe
D1 (Daily)
Filter
ADX > 25
Indicators
20 SMA + 34 EMA
1. Indicator Setup
Set up your chart with the following indicators:
- Fast MA: Simple Moving Average (SMA), Period 20, Apply to Low.
- Slow MA: Exponential Moving Average (EMA), Period 34.
- Filter: ADX (Average Directional Index), Period 13.
2. Long Entry (Buy) Rules
- Crossover: The 34 EMA crosses ABOVE the 20 SMA (Low).
- Strength: The ADX (13) line is above the level of 25.
3. Short Entry (Sell) Rules
- Crossover: The 34 EMA crosses BELOW the 20 SMA (Low).
- Strength: The ADX (13) line is above the level of 25.
Exit Strategy
- Signal Exit: Close when the moving averages cross back in the opposite direction.
- Fixed Targets: TP 100-150 points, SL 30-50 points.
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