XRPUSD 1D/1H DMI TRADING STRATEGY

DMI & RSI were developed by Welles Wilder
DMI has a 0 to 100 range
DMI determines price direction and trend strength
ADX line is non-directional. Determines trend strength regardless of trend direction
When ADX is upward trend is strong. Doesn't matter if trend is up or down
DMI + measures strength of an upward bullish move
DMI - measures strength of a downward bearish move
When Price goes up DMI + is above DMI -
When price goes down DMI - is above DMI +
We use DMI + or _ to gauge direction
WE use ADX to measure strength of trend
When - is above + bearish downward trend
When ADX is climbing up the trend strength is increasing

DMI Strategy Rules - manually make a 20 and 40 horizontal line in DMI
Day Chart
Step 1 Determine dominant trend of the day - which DMI is on top - wait for ADX to cross below/above 20 level
1H Chart
Confirm which DMI on top matches days trend
ENTER when ADX closes below/above 20 level
SL below/above last swing low/high
TP exit when ADX crosses below/above 40 level