Risk/Reward Hedging In a follow up to the hedge trade talked about 2 weeks ago, we want to also address the risk reward reasons for doing the hedge. As mentioned, the best way to hedge, was to focus on the currency that recently showed the most strength and the most weakness against the currency being hedged. In the example from 2 weeks ago, we hedged the US dollar by picking the AUSUSD as the weakest against the dollar and the NZDUSD as showing the most strength. We sold the AUDUSD […]

The Average Directional Index (ADX) is considered to be a trend indicator. On the MT4 platform, this indicator is listed under the Trend Indicators. When looking at the properties of the ADX, the Parameters tab setting contains the period of time being looked at & the color & style of the line that represents the strength of trend. The recommended period we suggest is 14 (looking at the last 14 candles) and apply to the “Close.” Since we are using this with trends, we will primarily being referring to a […]