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How do you know if a trend is actually going to keep moving, or if you’re buying right at the very top? In this comprehensive financial education tutorial, we are breaking down a powerful price action framework: The ADX DI Divergence Strategy combined with Williams %R and MACD for high-probability trend continuation trades.

Most traders only use the ADX to find out IF a trend exists. In this video, you'll learn how to spot a hidden divergence between the +DI and -DI lines to predict massive trend continuation moves before they happen. To filter out false signals, we layer on the Williams %R and the MACD indicator as mechanical measures of absolute trend strength and momentum.

Open Free Demo Trading Account: https://pocketoptioncapital.com

Instead of relying on the standard Average Directional Index line alone, I expose how the structural divergence between the $+DI$ (Plus Directional Indicator) and $-DI$ (Minus Directional Indicator) lines uncovers hidden accumulation and distribution. To ensure maximum execution safety, I layer this with the dual-momentum filtering of the Williams %R (tracking micro-velocity and immediate overbought/oversold exhaustion) and the MACD Indicator (validating macro-level structural momentum). Stop trading noise and start using data-driven, rules-based confluence to ride institutional-level expansions with mathematical precision.

📖 The ADX Divergence Confluence Blueprint:

1. The Directional Index Divergence Engine: Deconstructing the $+DI$ and $-DI$ relationship.
2. Trend Continuation Framework: Why DI divergence acts as an early warning for structural trend extension.
3. The Micro-Velocity Layer: Calibrating Williams %R to confirm rapid-fire price exhaustion.
4. The Macro-Momentum Shield: Using the MACD histogram and signal line to filter out false breakouts.
5. EXPLICIT ENTRY CRITERIA: The exact moment all 3 indicator variables align in real-time.
6. LIVE MARKET AUDIT: 4 Technical setups analyzed on the asset charts.

Whether you trade crypto, forex, or stocks, this rule-based 3-indicator setup will help you stop guessing trend strength and start executing with precision data.

Subscribe today, turn on notifications, and simplify your trading journey. Let's master the markets together.

🚩 DISCLAIMER (Required for Compliance):
The content on this channel is provided for financial education and informational purposes only. Trading Forex, stocks, and cryptocurrency involves significant risk of loss and is not suitable for every investor. Past performance is not indicative of future results. I am not a licensed financial advisor, CPA, or broker. Always perform your own due diligence and consult with a professional professional before making any financial decisions or investing real capital.

#PriceActionTrading #ADXIndicator #WilliamsPercentR #MACD #TrendContinuation #TechnicalAnalysis

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Transcript
00:00In this video, I'm going to be trading regular currency pairs utilizing the ADX indicator,
00:09the WIMS% R indicator, and the MACD indicator. Gus Schmidt, and I'm back with a new trading video.
00:17So today I'm on the pocket option platform, and I'm going to be trading regular currency pairs
00:23on the platform here. So if we click on our assets icon here to the left, the pocket option has
00:30various
00:31assets available to trade. They have currencies, cryptocurrencies, commodities, stocks, and indices.
00:38I'm going to be focusing on regular currency pairs. So when we click on this icon here, a drop-down
00:44menu
00:44pops up, and I've already checked off all my regular currency pairs. I won't be trading the OTCs
00:52or the synthetic currency pairs. Okay, so I'm going to be utilizing three indicators.
01:00The first indicator is the ADX indicator. If we click on our indicator icon here, the first indicator
01:07is the ADX. The second is the WIMS% R, and the third is the MACD here. So if we
01:14click on all three
01:15of these indicators, the indicators show up at the bottom of the chart here. For the ADX indicator,
01:22if I click on the pencil icon here, I have my ADX smoothing set to 14, DI length set to
01:307,
01:31and in the style settings, I've disabled the ADX line here. It's enabled in the default settings.
01:38For the plus DI line, I've changed the color to green, two pixels, and for the minus DI line,
01:43I've changed the color to red, two pixels, line width, so we can go ahead and save that. For the
01:51WIMS% R indicator, I've set the period to 7, and in the style settings, I've increased the line width
01:59for all three of the lines to two pixels each. The minus 20 line, green, two pixels. The minus 80
02:06line,
02:07red, two pixels. Main line, turquoise, two pixels. So we can go ahead and save that.
02:15For the MACD indicator, if we click on the pencil icon here,
02:23I've maintained the default settings, which are fast period 12, slow period 26, and signal period 9,
02:31and in the style settings, I've increased the line width of the MACD line to two pixels green,
02:37and for the signal line to red two pixels. So we can go ahead and save that.
02:45For my candlestick charts, I've clicked on the candlestick icon here. I've set the candles to 30
02:53seconds as 30 Japanese candles, and for my trade timer, I'm going to be taking two-minute trades,
03:02so I've set it to two minutes while looking at 30-second Japanese candles. Okay, so what I'm
03:08going to do now is I'm going to pause the video and I'm going to look for some trade
03:13setups.
03:18Okay, so I'm on the Great British Pound, Swiss franc currency pair, and I just took a buy trade here
03:24or a call trade. And so the reason why I took the trade here is we're beginning to see a
03:30bullish
03:31momentum here, a price action here in the price of the currency pair, number one. Number two,
03:38there's a growing divergence of the ADX lines here, the plus DI line and the minus DI line.
03:43It's showing an increasing separation. Then we have the Williams percent R line crossing over the
03:50green minus 20 line here and holding steady. And then third, the MACD lines, the green signal line,
03:59and the red line here are sloping upwards here. And then also, if we look at the histogram bars,
04:08they're printing above the zero line here. So all of these confuences suggest a continued bullish trend
04:17to the upside over the next two minutes. So let's monitor this trade and wait for the expiration.
04:39Price is pushing upward. We want to trade with the trend,
04:44but we also want to trade with the trend. We don't want to trade against the trend.
04:54Divergence is increasing here. I took the trade like right around here when I saw a sharp divergence
04:59here. That's the signal that tells me to take the trade as long as the trend is in alignment
05:07with all the other indicators here.
05:16Okay, so that trade was in the money. All right, so I'm going to pause the video and look for
05:22the next trade setup.
05:27Okay, so I'm on the US dollar Swiss franc currency pair, and I just took a buy trade here.
05:35And the reason I took the buy trade is
05:39I saw that the price closed above this previous level of resistance here.
05:48And, you know, we're seeing a general bullish trend in the price of the currency pair, number one.
05:53Number two, I took the trade when I noticed the sharp divergence of the two ADX lines here.
06:02Third, we have the wins percent R line
06:06printing above the minus 20 line here, the green minus 20 line.
06:11And then we have the MACD line,
06:16the green MACD line crossing over the red signal line here in an upward direction.
06:21And also the candles have begun to print above the zero line here.
06:27So all three of these, all four of these confluences suggest a continued bullish
06:33momentum to the upside in the price of the currency pair over the next two minutes.
06:40So let's monitor this trade and wait for the expiration.
07:00I just wanted to take note that I, I waited for the, this candle also to close above
07:07this previous level of resistance here in this candle here, because it could have been a level
07:15of resistance and the price could have reversed downwards, but I was confident.
07:23Okay. So that trade was in the money.
07:27So let me pause the video and look for the next setup.
07:31Okay. So I'm on the U S dollar Canadian dollar currency pair.
07:36And I just took a buy trade here.
07:39Okay. And the reason why I took the buy trade,
07:41first of all, if we look at the price action, we're seeing a general bullish push here from
07:49bottom left to top right. Also, I waited for this candle to close above the wick of
07:59these two candles here, which suggests a potential level of resistance here, right?
08:08Secondly, there's a divergence of the ADX lines here. I waited for a sharp divergence.
08:16And then here, if we look at the wind's percent R line, it's holding steady above the minus 20 line
08:24here, the green minus 20 line. And then thirdly, we're beginning to see the MACD histogram lines print
08:32above the zero line. And there's a slight bullish slope, positive slope here in the MACD indicator.
08:44So all of these confluences suggest a continued push to the upside in the price of the currency pair.
08:53It's sort of flat lined already, but I'm anticipating a push upwards over the next two minutes. So let's
09:01monitor this trade and wait for the expiration.
09:05Okay.
09:27Okay. So that trade was in the money. There was a final last push and
09:34as you can see here, it seems to be continuing to push upwards.
09:41All right. So let me pause the video and look for the next trade setup.
09:50Okay. So I'm on the great British pound, US dollar, and I just took a buy trade here.
09:59And the reason why I took the buy trade is primarily, first of all, we're beginning to see it looks
10:06like
10:06a reversal here, the start of a bullish trend here. The price had been showing some bearish momentum,
10:14but around this area here, we begin to see a bullish reversal here. Secondly, I noticed the sharp
10:23divergence here of the ADX line here. If you see the growing separation of the lines between the green
10:29plus DI line and the minus DI line here. Then the Williams percent R line is printing
10:39above the minus 20 line here, telling us that the relative strength of the bullish trend here is
10:46relatively strong. And then here, I began to see the histogram lines print showing growing
10:56histogram line widths here and the MACD lines sloping, both the MACD line and the signal line
11:06sloping in an upward direction. So I went ahead and took the buy trade.
11:11So let's monitor this trade and wait for the expiration.
11:42Okay. So that trade was in the money. All right. So I'm going to pause the video
11:48and look for one last setup. Okay. So I'm on the Canadian dollar, Japanese yen currency pair,
11:59and I just took a sell trade here. And the reason why I took the sell trade is
12:06the price. First of all, I noticed the divergence in the ADX line here and ADX lines here, a sharp
12:14divergence between the lines. Plus, if we look at the price action, we're seeing a general bearish
12:21trend in the price of the currency pair at the moment. And then if we look at the Williams percent
12:27R,
12:27it's the signal line has pushed below the minus 80 line here, which suggests the relative strength of
12:36the bearish trend is still relatively strong. And then the MACD lines are sloping downwards
12:46here. If you look at the green MACD line and the red signal line have begun to slope in a
12:52downward direction.
12:54So all of these confuences suggest a continued bearish momentum to the downside in the price of the
13:03currency pair. So let's monitor this trade and wait for the expiration at the end of the two minutes.
13:49okay yes so that trade was in the money so yes if you like this trading strategy please give
13:54it a thumbs up subscribe to my channel if you're interested in keeping up to date with my latest
14:00trading strategies i have a link to the trading platform in either in the video comments or in
14:07the video description or the channel bio i also wanted to make note that i've been trading about
14:14just about a little under one percent of my capital here the whole idea is with trading
14:21these options you want to get at least a 66 to 70 percent uh win rate and that way you're
14:29able to
14:29grow your account if we take huge percent if we take trades a huge percent of huge percentages of
14:36our capital that can lead to to huge losses as well the whole idea is we want to grow our
14:42account
14:43slowly but surely and this is why i practice proper risk money management and i'll see you in the next
14:49video gush
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