The article is devoted to the pair of the MACD and ADX indicators used in one trading strategy, the rules and nuances of work by it.
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Today, we will speak about another trading strategy meant for minute charts, with a potential profit of 10-15 points per trade. The characteristic feature of this strategy is the use of the ADX indicator on small timeframes: normally, it is used on daily charts, as its author advised.
In this article, we’ll talk about a term called volatility. It’s a very important parameter of the financial instrument price, which is used for forecasts and trading.
the ADX, or the Average Directional Movement Index, has not become as widespread as, say, the RSI. It is most likely due to the complexity of its formula; what is more, it is more of a trend indicator, and a beginner is seldom ready to trade large movements with large Stop Losses.