FxGhani Parabolic SAR + ADX ( Beginners ). - FxGhani Trading Learning Place

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FxGhani Parabolic SAR + ADX ( Beginners ).


Time Frame: Any
Currency: Any
Indicators: Parabolic SAR (0.02, 0.2) ADX 50 (with +DI, -DI lines).

Entry Rules: 

SELL when the +DI line is below the -DI line, and Parabolic SAR
gives sell signal. When the +DI line is above the -DI line, all Parabolic Sar sell signal should be ignored.

BUY when the +DI line is above the -DI line, and Parabolic SAR gives buy signal.
When the +DI is below the -DI line, all Parabolic SAR buy signal should be ignored.

Exit: When the +DI line and the -DI lines have crossed again.

Advantages: allows filtering entries and predicting good exits.

Disadvantages: Both Parabolic SAR and ADX are follow up indicators. Although they complement each other very effectively, the weakest is the ADX because during trading it can give a signal and then change to the opposite. Once giving a
signal from ADX, waiting for the current price bar to close to avoid such misleading advise.
In the graphic below Parabolic SAR are the white dots. The ADX 50, +DI is the white line and the -DI is the green line.

FxGhani Parabolic SAR + ADX  ( Beginners ).

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