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

To: Gary Martin who wrote (24410)	11/21/1999 5:29:00 PM
From: Johnny Canuck	Read Replies (2) \| Respond to of 69810

Hi Gary, I don't have any experience with the modified ADX that you mentioned, could you post a definition? This is the DMI definition I am more familiar with: iqc.com I do think it is important to use another indicator to confirm to prevent whipsawing in and out of positions as indicated in this definition. >>Has anyone been able to compare the application of the DMI in >>different markets? I have only used this indicator for a S&P trading system. I don't actually trade the index though. I use the system more as an indicator of market direction to help time entries and exits for my stock specific positions. I had not done a controlled study, but I do find that the DMI gives fewer false signal when the markets are very volatile. On the surface that would appear to make sense as the indicator is essentially based on ranges. Large ranges occur in volatile markets. Large swings in price also have a higer probablity of correcting as the price action has moved farther out from the mean in a very short period of time. I find the time frame is a very important element. The faster the rise the greater the probability of a pull back. Again, this is all andedotal evidence. I have not done a rigorous study. Harry