Fixed time trades gain such popularity because they are considered to be relatively easy. But to earn profits, you need a good strategy that will help you in identifying the best entry points. Today’s strategy is built on two indicators that are called the Average Directional Movement Index and the Exponential Moving Average.
Contents
Two standard indicators in one strategy
The strategy I will describe today combines two indicators. To use it, set the chart for the timeframe of 1 minute and the expiry period for 60 seconds.
Exponential Moving Average
You add indicators by clicking on the indicator feature icon and then the name of the required tool. The Exponential Moving Average, EMA, in short, will be visible on the price chart. The period for this strategy has to be set for 28. You may choose to change the thickness and the color of the indicator’s line if this is what will make the chart more transparent for you.
Average Directional Movement Index
The indicator designed by J. Welles Wilder Jr. is called ADX in short. You will attach it to the chart in the identical way you added the previous one. Change the period (the default period equals 14) for 5. Adjust the color and thickness of the lines according to your preferences.
The ADX indicator is in the form of three lines moving below the price chart. The red line is called ADX and it gives information about the trend’s strength. The blue line is called +DI and the yellow one -DI represents the bullish and bearish fluctuations. They will show the points where to open and close trading positions.
Easy strategy for 60 seconds trades with the EMA and the ADX
When to enter a UP trade
This strategy is based on two indicators and you must wait for several conditions to be met. These are:
- The blue line of the ADX indicator crosses above the yellow line
- The price bar crosses the EMA28 and they continue to appear above it
- The body of the signal candle is bullish
- For a signal to be stronger, the previous candle should also represent the uptrend.
When to enter a DOWN trade
If you want to open a position for the price decrease, you should wait for the following circumstances:
- The blue line of the ADX indicator crosses below the yellow line
- The price bar crosses the line of the EMA and the following candles develop beneath it
- The body of the signal candle is bearish
- For a signal to be stronger, check if the previous candle represents the downtrend.
Summary
The strategy that is based on the EMA and the ADX indicators is designed for opening positions with an expiration time of 60 seconds. To use this strategy the chart has to be set for the period of 1 minute. Then you need to add both indicators to the chart and wait for all the conditions to be fulfilled.
Try 60 seconds strategy now on your Olymp Trade demo account. This is your free training field. Once you are comfortable using the strategy, move to the live account and start dealing with real money. However, keep in mind that this strategy is far from perfect. There is no perfect strategy. You will always face losses, the only thing you can do is minimize it and deal with it when it comes.
You will find the comments section below. Tell us what thoughts about today’s strategy you have. I would be glad to hear from you.
Enjoy trading!
