Skip to playerSkip to main contentSkip to footer
  • 4 weeks ago
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.

Open A FREE $50K Demo Account: https://pocketoptioncapital.com

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)

Open A FREE $50K Demo Account: https://pocketoptioncapital.com

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

Category

📚
Learning
Transcript
00:00quick reminder this video is for educational purposes only trading involves high risk and
00:06you can lose your money there are no guaranteed profits always practice first on a demo account
00:12and never risk more than you can afford to lose now let's dive straight into the rules
00:17sell trade ema 10 must be below ema 25 both moving downward adx line must be above the middle line
00:25indicating strong bearish trend macd histogram below zero and bars growing bigger downward
00:32means momentum increasing enter a cell trade when a bearish candle closes below ema 10.
00:39buy trade ema 10 must be above ema 25 both moving upward adx line must be above the middle line
00:46indicating strong trend mhd histogram above zero and bars growing bigger means momentum increasing
00:53upward enter a buy trade when a bullish candle closes above ema 10. now very important times
01:00to avoid trading adx is below middle line means market is too weak flat macd histogram is flat or
01:08choppy means momentum unclear emas are very close flat means no clear trend always manage your risk
01:17risk only one to two percent of your balance per trade have a daily rule stop after four to five
01:23wins or stop if you lose two trades in a row never increase trade size to chase losses discipline is
01:30what keeps you in the game long term you'll find the full indicator settings bonus trading tips and
01:36helpful links in the description below so check that out let's take this live on pocket option and see
01:41how it performs on real candles right now all right traders here's the setup where i entered a cell trade
01:48you can see the ema 10 blue line is below ema 25 orange line both clearly sloping downward this
01:55confirms the downtrend the adx line is above the middle line which means the market is trending
02:01strongly and not in a flat condition at the same time the macd histogram is below zero and the red bars
02:07are growing bigger showing that bearish momentum is increasing as soon as a bearish candle closed below ema 10
02:15i placed my one minute cell trade at the next candle now let's look at how the trade progressed as the
02:21candles formed price continued to move downward staying below both the ema 10 and ema 25 this shows
02:28that the trend was still intact the adx remained above the midline which confirmed the strength of the
02:34trend at the same time the macd histogram kept printing red bars indicating momentum was still bearish this
02:42combination of ema adx and macd alignment gave confidence that the trade was moving in the right
02:49direction and here's the result the trade closed in profit as the candle finished lower than our entry
02:55point here's where i entered a buy trade notice how the ema 10 blue line has crossed above ema 25 orange
03:03line and both are sloping upward that confirms an uptrend the adx line is above the middle line so the market
03:10has enough strength to avoid chop down below the macd histogram is above zero and the green bars are
03:17growing which tells me momentum is building in the bullish direction after a brief pullback this
03:23bullish candle closed above ema 10 so i placed a one minute buy on the next candle as the trade progressed
03:31price stayed above ema 10 and ema 25 and the emas continued to fan out upward that's a healthy trend
03:38look the adx remained above the midline confirming the trend wasn't fading meanwhile the macd kept
03:45printing green bars showing momentum held up during the move no signs of heavy rejection or sudden spikes
03:51against the trend so i simply let the position run to expiry no martingale no adding size this trade
03:58closed in profit because price finished above our entry at expiry here's where i entered a buy trade ema 10
04:05blue line is above ema 25 orange line and both are sloping up adx line is above the middle line so
04:12we're not in a flat choppy phase max ed histogram is above zero with green bars expanding after a brief
04:19pullback this bullish candle closed above ema 10 so i placed a one minute buy on the next candle as the
04:26trade develops price holds above ema 10 and ema 25 and the emas fan out upward a healthy trend structure
04:35adx stays above the midline confirming strength macd keeps printing taller green bars showing momentum is
04:42intact i don't add size or martingale i just let it play out to expiry why this strategy works adx filters
04:50sideways markets we only engage when the market is trending macd histogram confirms momentum
04:56helps avoid many false ema crossovers ema alignment provides direction quick visual confirmation of
05:03trend bias 15 seconds chart plus one minute expiry targets short precise moves within strong trends
05:10this position closed in profit because price finished above our entry at expiry all right as promised
05:17here are the exact settings so you can test this on a demo first emas add moving average twice ema 10 fast
05:25inputs period 10 type ema styles pick a clear color and set 2 pixels ema 25 slow inputs period 25 type ema
05:36styles choose a contrasting color at 2 pixels adx open indicators adx inputs adx smoothing equals 7 di length
05:46equals 10 styles keep adx line on turn plus di and minus di off we use the adx line only line thickness 2 pixels
05:55for visibility rule reminder we trade only when the adx line is above the middle line in the adx window
06:02may cd histogram only open indicators macd inputs fast 10 slow 24 signal 8 styles enable histogram up down
06:14colors as you like turn macd line off and signal line off
06:27you
Be the first to comment
Add your comment

Recommended