The Holy Grail

Indicators:

• EMA (20, close)

• ADX (14) with levels of 50, 30, 15

Key conditions:

The analysis and entry timeframe should be at least H4, and position tracking should be on D1. if the ADX lines are in the 15 zone, indicating a flat market, do not enter the trade.

BUY conditions (all conditions must be met): the EMA shows an up-trend, the ADX rises above 30, the EMA breaks down from top to bottom, and there is a rollback. enter the trade on the next bar.

SELL conditions (all conditions must be met): the EMA indicates a bearish trend, the ADX rises above 30, the EMA breaks down from bottom to top, and there is a rollback. Enter the trade on the next bar.

Exit criteria: exit the trade when the ADX line reverses downward from the upper zone.

Exercise:

Open a chart with an analysis and entry timeframe of at least H4 and set the position tracking on D1. Apply the EMA indicator with a period of 20 using the close price, and add the ADX indicator with a period of 14, setting levels at 50, 30, and 15. Ensure that the ADX is not in the flat zone of 15.

For a BUY signal, look for an up-trend indicated by the EMA, a rising ADX above 30, a breakdown of the EMA from top to bottom with a rollback, then enter a long position on the next bar. Set a stop-loss below the recent swing low and monitor the trade, exiting when the ADX line reverses downward from the upper zone.

Repeat the process for a SELL signal by identifying a bearish EMA trend, ADX rising above 30, a breakdown of the EMA from bottom to top with a rollback, and entering a short position on the next bar.