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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: drsvelte who wrote (24175)	10/30/1999 4:45:00 PM
From: Johnny Canuck	Read Replies (1) \| Respond to of 69925

Hi Doc, I have mentioned some of the elements of the system before. Essentially you can see most of it in this link: iqc.com The primary signal is the ADX and DMI ( ADX > 60, difference in DMI greater than 40 for overbought). Confirmation is by MACD. There is a time component too that I use but it is difficult to explain as it is more of an art that I have learned by trial and error. The signal is mechanical and is only good intra-day or overnight. If you noticed my post, on a longer time frame I expected a challenge of the next resistance level at 1368. The way to use the signal would have been to expect a more bullish intermediate move, and use the indicated pull back indicated as a chance to pick up long positions. Essentially, there was a gap on that day and there is a high probability of gaps getting filled intraday. Again, the DMI and ADX indicated the range had changed too much, too fast so there was a high probability of the gap being filled intra-day. As you can see the strength of the move was greater than normal as the index easily went through the 1368 level, so that signal was too early. The sell signal was in fact negated an hour after the open the following day. Harry