Trader DNA
Learn about the profitable new Madx Cobra trading system for forex, stocks, and crypto markets, which uses three simple indicators to identify trends and entry signals; avoid low probability trades and capitalize on new trends early by strictly following rules.
Easy Trading with MADX COBRA System: A Beginner’s Guide
Introduction: Welcome to MADX COBRA System – A Simple, Yet Profitable trading strategy
If you are looking for a low-risk, high reward trading system that is easy to use, then you are in the right place. In this video, we will introduce you to the MADX COBRA system – a trading strategy that can be used in Forex, Stocks and Crypto markets.
Section 1: Understanding the MADX COBRA System
Before we start, let’s make one thing clear – everything we discuss in this video can be used for currency trading, stock trading, and crypto. The MADX COBRA trading strategy is incredibly simple and easy to use, as long as you follow the rules. The only thing that could potentially make this system fail over the long term is not sticking to the set guidelines.
Section 2: System Setup
The MADX COBRA system is a clean system that uses only three key indicators. At first glance, it appears as though there are seven indicators used, but that is not the case.
The three indicators used in the system are:
– The 200-period SMA (Simple Moving Average), which is applied to the typical price average of high, low, and close
– The 10-period EMA (Exponential Moving Average), which is applied to the typical price average of high, low, and close
– The 5-period ADX (Average Directional Movement Index), which is applied to the typical price average of high, low, and close
Section 3: Understanding Moving Averages and ADX
The 200-period SMA calculates and plots the average price over the last 200 candles, indicating the overall trend direction. An uptrend is indicated if the line is moving up, while a downtrend is indicated if the line is moving down.
On the other hand, the 10-period EMA is another moving average that calculates the average over the last 10 candles. This moving average is exponential, giving more weight to the most recent candles over the oldest ones. The moving averages, when used together, tell us the direction of a trend.
The ADX, in its most basic form, measures the average direction up and the average direction down over a set period (in this case, five candles). The ADX complements the moving average lines and tells us the strength of a trend. The indicator draws a line on a graph beneath the main chart. If the line is moving upwards, the trend is strengthening, and if it is moving downwards, the trend is weakening.
Section 4: Establishing the Short-Term Trend Direction
To trade in the direction of the trend, we need to establish the direction of the short-term trend. We use the 200 SMA (black line) to help us identify the trend direction over the last 200 candles. If the blackline is moving upwards, it means the short-term trend is up. Conversely, if the black line is moving downwards, it means the short-term trend is down.
The price will cross the moving average, and when it does, we change our trade precedent. If the price is above the black line, we only take long trades, while if the price is below the black line, we only take short trades.
Section 5: Entry Signals
We now need to decide upon our reasons to enter the market in whichever direction the trend is indicating. This is where the 10 EMA (blue line) enters the system as an entry signal. If the price is ever inside the buffer zone of either moving average, it is classed as a no-trade zone, and we do not enter the market for any reason.
If we are trading above the blackline, we wait for the price to close outside and above the blue buffer zone, and we only take long trades. Conversely, if we are trading below the black line, we wait for the price to close outside and below the blue buffer zone, and we only take short trades.
Section 6: Conclusion
To sum up, the MADX COBRA system is a simple, easy-to-use trading strategy that can be applied to Forex, Stocks and Crypto markets. By following the set guidelines and only trading in the direction of the trend, this strategy can be low risk and high reward. Remember, the only thing that could potentially make this system fail over the long term is not sticking to the rules.
