The ULTIMATE Trend Trading Strategy 10 EMA, 25 EMA, ADX & MACD Combo

1 month ago
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The 10 EMA (Exponential Moving Average) and 25 EMA are powerful tools for identifying short- to medium-term trends in the market. When the 10 EMA crosses above the 25 EMA, it often signals bullish momentum, while a cross below can indicate bearish momentum. Traders use this crossover method to align themselves with the prevailing trend, ensuring entries and exits are based on momentum rather than guesswork. By combining these EMAs, traders can filter out minor fluctuations and focus on stronger, more reliable signals.

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The ADX (Average Directional Index) adds another layer of confirmation by measuring the strength of the trend. A reading above 20–25 suggests a trend is developing, while values above 40 indicate a very strong trend. When the 10 EMA crosses the 25 EMA and the ADX is showing rising strength, traders gain more confidence in entering the trade. This helps avoid false breakouts or sideways market conditions, which can otherwise lead to unnecessary losses. Essentially, the ADX ensures traders only act when the market has sufficient strength behind its move.

To further refine entries, the MACD (Moving Average Convergence Divergence) indicator is often used alongside EMAs and ADX. The MACD line crossing above the signal line confirms bullish momentum, while crossing below confirms bearish momentum. When all four tools align — for example, the 10 EMA above the 25 EMA, a rising ADX, and a bullish MACD crossover — traders have a high-probability setup to capitalize on. This multi-indicator strategy helps filter noise, confirm market direction, and increase trade accuracy, making it especially valuable for swing traders and intraday traders looking for strong setups.

In this video, I’ll show you step by step how to use EMA 10, EMA 25, ADX (7,10), and MACD Histogram (10,24,8) to filter weak signals and catch strong BUY and SELL setups.

📊 What you’ll learn in this video:
✔️ How to set up EMA 10 & EMA 25 for trend direction
✔️ Why ADX line above the middle line confirms strong market conditions
✔️ How MACD histogram helps confirm momentum
✔️ Exact entry rules for BUY trades and SELL trades
✔️ When to AVOID trades to reduce false signals
✔️ Risk management rules (1–2% per trade, daily stop limits)

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Money Management:
It is important to follow up with this strict rule of investment:
If you have $100 in your account, each open position should be $5 tops
If you have $200 in your account, each open position should be $10 tops
If you have $500 in your account, each open position should be $25 tops
If you have $1,000 in your account, each open position should be $50 tops
If you have $2,000 in your account, each open position should be $100 tops
If you have $5,000 in your account, each open position should be $250 tops

We're currently in our 13th year helping traders become successful in the live markets so we know a thing or two about leveraging a small account into serious wins.

Risk Disclaimer:
Trading options involves financial risk and may not be appropriate for all investors. The information presented here is for information and educational purposes only and should not be considered an offer or solicitation to buy or sell any financial instrument. Any trading decisions that you make are solely your responsibility. Past performance is not necessarily indicative of future results.

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