Alternative Indicator to ADX,+DMI,-DMI

Discussion in 'Strategy Development' started by DennisAndLisa, Feb 8, 2004.

  1. Does anyone know of a good alternative Indicator to ADX,+DMI,-DMI that I can use for Dave Landry's Swing trading method?

    Thank you,
  2. nkhoi

    nkhoi Moderator

  3. Whats wrong with ADX+DMI-DMI ?

    Michael B.

  4. Dennis and Lisa,

    As many others on ET, I dumped ADX, +DMI, -DMI a long time ago as perfectly worthless. Like you both, I'm still lookng for something better. Send me a postcard if you found something.

    Good luck,

  5. dbphoenix


    I assume you read Wilder's book?
  6. vlad


    I tested ADX,+DMI,-DMI for ES 5 min bars in depth 5 years. Result is 20-400 points a year. I don't trade it because of this system don't make any money in long enough periods (3-9 months),

    I found that multidimensional adaptive recognition works much better.

  7. Well, I find that when I use multiple timeframes with "ADX/+DMI/-DMI" together with the "Time Series Forecast Indicator" and watch the "Price Envelope" and calibrate it with the correct % deviation, as each stock has its own character, is a valid system.

    I can go into more detail if anybody is interested......I am not worried about revealing my system as it is "work in progress" and takes several hours each evening. So if somebody wants to copy or help, let me know.

    I am testing a system, with a small amount of money, to diversify across sectors, the top ranked stocks, from various websites.

    I find it to be less volatile to enter "good stocks" with those indicators above....and exit with those indicators above...I am not daytrading or scalping so it is more importat to find good stocks already trending....and no I am not huge or named Mr. Market....

    Remember, that a stocks price movement is dependant on the the "general market direction" 60-70% of the time(I traded futures full-time because of this, I thought why not trade the direction directly). Good quality stocks that show a pattern of less volatility during the ebb and flows of direction is what I rank for....(hint: the adx/+dmi/-dmi works better with less volatile stocks and holds you in the trend longer)

    I do not use these indicators intraday....just EOD daily bars...and not on Futures. I hold from 1- ? days....still holding some after 2 weeks...I find this type of investing/trading better suited for me, as I work Full-Time during the market day.

    I use the free charts at and found a little ranking program that pulls lists of recommendations from several free sites and ranks cost me $24.00/yr....I use as a broker because my entry and exit price does not need pinpoint accuracy. The ability to diversify at just $14.95 per month FLAT with UNLIMITED instruments/exit and entries was what I needed to learn with.

    I hope this post has helped somebody here...I know the more experienced ones here have been through much more than I. But I find to diversify capital between "High Risk Futures Trading" and a more conservative approach with "Short Term Stock Trading" is best for ME. To just trade Futures without rounding out my yearly yield was too much like a roller coaster....

    Straight and smooth equity curves is where its at.......

    Michael B.
  8. Didn't you know this is old hat? I assume you can't make money with it either.

    Wilder himself switched to delta-stuff a long time ago. We doodled about this a few weeks ago at ET. :cool:

    Be good,

  9. dbphoenix


    As with any "system" or indicator or indicator set, it's what one does with it that matters. To say that something is "worthless" implies that you don't understand it. And even if you do understand it and can't make it work, that doesn't mean that someone else won't be able to do just fine with it.

    There are many ways to make money.
    #10     Feb 8, 2004