Technical analysis for shorts & longs Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Technical analysis for shorts & longs

SPY 692.24

+0.3%

Jan 15 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Johnny Canuck who wrote (24402)	11/20/1999 3:31:00 PM
From: Gary Martin	Read Replies (1) of 69808

Hi All, I wrote to ask the members of this thread a technical question which may be a little off the "hot" subjects you are discussing. I've started using Welles Wilder's "Directional Movement Indicator" as I found it recently on CQG's service for futures trading. The indicator shown by CQG does not match the description of DMI as shown in one of my 6-year old technical analysis manuals. This newer, current version has three lines, +DMI, -DMI and ATR a version of Wilder's ADX)and provides a crossover signal when the lines make that pattern. (The older version took the difference in the lines and made a histogram with bars above and below a zero line.) My questions are based on the fact that I started trading using the "new crossover" DMI and it looks good on (currently)less volatile markets such as Wheat and other Agricultural markets. However, I am using the indicator based on a different interpretation than recommended by Wilder in a synopsis I read from his book "New Concepts in Technical Trading Systems". But, when I follow his recommended approach for using the indicator in the S&P futures, it looks like it is right 2 out of three times it makes a signal. So, I am seeing my interpretation work with low volatility markets, and Wilder's recommendation work in high volatility markets (anyway, that's what I think I'm seeing!) If I didn't confuse you all with the proceeding too badly, I would like to ask if anyone has any experience with the DMI in high volatile and/or lower volatility markets? Has anyone been able to compare the application of the DMI in different markets? Also, does anyone have the new DMI in a software package? (I have the older version in an AIQ program from the mid 1990's.) Thanks. Gary

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next