Trading DI Crossovers with a Smoothed ADX Indicator

Summary

This trading system uses crossings between the positive and negative directional indicator lines of a smoothed ADX indicator. It generates a trade signal when the red and green lines cross at a bar close. The description identifies XAUUSD on a four-hour chart as the instrument and timeframe used for a 2011 test, and says the displayed tests used the expert advisor’s default inputs.

The described test did not use stop-loss or take-profit orders. The document refers to chart images of trade history and testing results but provides no numerical performance measures or interpretation of those results. It therefore offers a basic indicator-based entry rule, not enough information to assess profitability or risk. The strategy’s behavior may depend on the indicator settings, execution assumptions, and market conditions, none of which are explored in depth.

Key ideas

• Enter trades based on a crossover of the smoothed ADX positive and negative directional lines.
• Generate the signal at bar close.
• The described test used XAUUSD on a four-hour chart in 2011 and default expert advisor inputs.
• The test omitted stop-loss and take-profit orders, and the text supplies no numerical performance statistics.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.