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  1. #1
    Solid Member KobusVisser's Avatar

    ADX, RSI & Volume - A winning recipe? !!!

    After some reading and testing over the past 1 or 2 months I came up with a strategy that I feel comfortable sharing. It's not that easy to follow and trade, but once you get the hang of it you'll see the potential it has. Let's get right to it:

    The Setup:

    Using your MT4 trading platform add the following indicators to a M15 chart

    RSI - Relative Strength Index ( 7 ) with Levels 30 & 70
    ADX - Average Directional Movement Index ( 20 ) with Level 20
    Volume
    Daily Range Calculator ( added 30 March ) - https://www.dropbox.com/s/w7jt6t506m...Calculator.ex4


    The Entry:

    Place a CALL/BUY Option when, at the close of the candle, the RSI is below 30, the ADX is below 20 and the Volume Bar is lower than the previous volume bar. Expiry is 15 Minutes. Daily Range Calculator added for when we trade reversal candles at these levels>

    Place a PUT/SELL Option when, at the close of the candle, the RSI is above 70, the ADX is below 20 and the Volume Bar is lower then the previous volume bar. Expiry is 15 Minutes. Daily Range Calculator added for when we trade reversal candles at these levels>

    VERY IMPORTANT: Always check for previous support and resistance and do not trade after a pull back candle.

    Chart Setup Video - http://youtu.be/0g9NPasxq2U
    Strategy Walk through - http://youtu.be/3Yw7_6Ewfno

    This image shows what not to trade - notice also the candle body is not a full body candle: http://3.bp.blogspot.com/-YKkUmBtwf_...ute_entry1.png

    This image shows a good setup - important is the full body candle: http://4.bp.blogspot.com/-xqCBIRndex...ute_entry2.png

    So far I'm on 6 Winners and 2 Losers.

    Make sure to read Post #17
    Last edited by KobusVisser; 03-30-2014 at 01:29 PM. Reason: Added Daily Range Calculator

  2. #2
    Solid Member Zanadu's Avatar
    Hi Kobus,

    Thanks for sharing your strategy !

    Shall try this for the next 2 weeks and will post the results.

    What is this RSI (7) means ? Is this 7 is the period to set ?

  3. #3
    Solid Member KobusVisser's Avatar
    Quote Originally Posted by Zanadu View Post
    Hi Kobus,

    Thanks for sharing your strategy !

    Shall try this for the next 2 weeks and will post the results.

    What is this RSI (7) means ? Is this 7 is the period to set ?
    Yes, the period is 7

  4. #4
    Specialist Member marc's Avatar
    Interesting strategy ... I will definitely have a deeper look into that ...

    Thanks for sharing, Kobus!

  5. #5
    Solid Member KobusVisser's Avatar
    Nothing today worth trading so I guess we enjoy the weekend and get back at it on Monday....

    Have a good one!

    Click image for larger version. 

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  6. #6
    Solid Member Zanadu's Avatar
    Hi Kobus,

    Thanks for your reply.

    I have some problem in plotting the strategy as mentioned.

    I think the RSI is done properly with a 7 period.

    In ADX we have various values such as: Period, Fixed Minimum and Fixed Maximum and then
    the levels

    Then the volume

    My plotting comes nowhere near your picture.

    Please see my screenshot and would appreciate if you could guide me
    how to plot it properly. Especially the various values to fill.

    Pls see my screenshot here : http://www.mql5.com/en/charts/166093...da-corporation

    Thanks for commenting

  7. #7
    Solid Member KobusVisser's Avatar
    Quote Originally Posted by Zanadu View Post
    Hi Kobus,

    Thanks for your reply.

    I have some problem in plotting the strategy as mentioned.

    I think the RSI is done properly with a 7 period.

    In ADX we have various values such as: Period, Fixed Minimum and Fixed Maximum and then
    the levels

    Then the volume

    My plotting comes nowhere near your picture.

    Please see my screenshot and would appreciate if you could guide me
    how to plot it properly. Especially the various values to fill.

    Pls see my screenshot here : http://www.mql5.com/en/charts/166093...da-corporation

    Thanks for commenting
    Step 1: Disable the Grid - Press Ctrl G
    Step 2: Put the Volume indi in a separate window - you have it in the same window as the ADX
    Step 3: Go to the ADX indi properties and set the color of +DI and -DI to None and Period to 20 plus add a Level 20

    That should do it. Also make sure your chart is M15 as I have only tested this on the M15 time frame with 15 minute expiry options.

  8. #8
    Rookie Member ramonda's Avatar
    Thank you Cobus!!! That is really great and well explained material. I will use this strategy in a demo test mode to see will it work for me!

    Best regards,
    Ramonda

  9. #9
    Solid Member KobusVisser's Avatar
    Quote Originally Posted by ramonda View Post
    Thank you Cobus!!! That is really great and well explained material. I will use this strategy in a demo test mode to see will it work for me!

    Best regards,
    Ramonda
    You're welcome!

    I hope that it will work for you.

  10. #10
    Solid Member KobusVisser's Avatar
    Chart Setup Video - http://youtu.be/0g9NPasxq2U
    Strategy Walk through - http://youtu.be/3Yw7_6Ewfno

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