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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: freelyhovering who wrote (17742)	12/6/1999 9:33:00 AM
From: Sal D	Read Replies (1) \| Respond to of 29382

Myron, I can't access the new chart capabilities on SI either I don't know how or they are only available on the new SI (I'm still using the old version) but I do know about DMI and ADX it is my favorite indicator I have a scan and a template for it on my Metastock program. The most important thing to remember with ADX is it signals changes in direction of the prevailing trend. High readings that reverse direction indicate that the price trend has lost directional movement. A reading below 25 indicates a lack of directional movement. When the ADX starts to rise, a period of price movement is signaled. This comes from a positive 10 day MA crossover or occasionally a trendline violation. The ADX does not signal the direction of the trend. This comes from the interpretation of the relationship between the +DI and -DIs. When the +DI crosses above the -DI it signals that the new trend will be positive and vice versa. I use a 14 unit ADX with a 10 day moving average. And a 14 unit +DI and -DI. You can also smooth the +DI and -DIs with a 10 period MA, this will will make the crossovers of the DIs more significant but often less timely because of the smoothing. You can also use DMI with price and volume oscillators. Hope this helps, Good Luck. Joe