Triple Confirmation Strategy: EMA, ADX, and MACD
This strategy is a robust trend-following system that refuses to rely on a single indicator. By combining EMA crossovers for direction, ADX for trend strength, and MACD for momentum, the “Triple Confirmation” strategy aims to filter out weak signals and enter only high-probability setups.
Strategy Profile
Timeframe
H4, D1
Indicators
EMA + ADX + MACD
Type
Trend Following
1. Indicator Setup
Configure the following indicators:
- Moving Averages: EMA 4 (Fast) and EMA 10 (Slow).
- ADX (Average Directional Index): Period 28. Ensure lines +DI and -DI are visible.
- MACD: Settings 5, 10, 4.
2. Long Entry (Buy) Rules
- EMA Cross: The EMA 4 crosses the EMA 10 from below to above.
- ADX Trend: The -DI line must be above the +DI line (Note: This is a contrarian/reversal condition specific to this strategy).
- Momentum: The MACD histogram must be below zero.
Note: This setup catches the turn at the very beginning of a reversal.
3. Short Entry (Sell) Rules
- EMA Cross: The EMA 4 crosses the EMA 10 from above to below.
- ADX Trend: The +DI line must be above the -DI line.
- Momentum: The MACD histogram must be above zero.
Trade Management
- Stop Loss: 3 times less than the Take Profit (Risk:Reward 1:3).
- Take Profit (H4): 60 pts (EUR), 70 pts (GBP).
- Take Profit (D1): 200 pts (EUR), 250 pts (GBP).
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