ADX + DMI Trend Following Strategy
r/technicalanalysisstocksDaily or 4-hourby reddit_community
ADX >25 confirms trend, +DI/-DI crossovers for direction. Avoids false signals in ranges. Works on any timeframe and market.
ENTRY RULES
ADX must be above 25 (confirms trend) | +DI crosses above -DI = long signal | -DI crosses above +DI = short signal | Both conditions must be true simultaneously | ADX should be rising (trend strengthening)
EXIT RULES
Exit when DI lines cross back | Or when ADX drops below 20 (trend dying) | Trail stop at 2 ATR from entry | Take partial at 1.5:1 RR | Close if ADX reverses sharply from peak while in trade
INDICATORS
ADX+DI-DIATR
ORIGINAL POST
198
r/technicalanalysisposted by reddit_community
ADX + DMI Trend Following Strategy
Use ADX above 25 to confirm a trend exists, then use +DI/-DI crossovers for direction. Enter long when +DI crosses above -DI while ADX > 25. Enter short when -DI crosses above +DI while ADX > 25. This avoids the classic mistake of trading crossovers in non-trending markets. ADX rising means trend is strengthening. Works on any timeframe and any market.
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