To scalp for a small move (under a nickel), I just read the tape and Level 2. I'm usually correct around 70% of the time. Why would you need other indicators? I would think the indicators you guys are talking about are for longer-term trades with much higher profit potential.
The reason I do DMI "scalping", is because I am right way more than 70% of the time using DMI. Plus many times a DMI trade will shoot right up and you end up with a far better move. Ex. This morning bought CSCO @ 19.15 at 9:41AM and sold it @ 19.31 at 9:58AM (and I actually got in late and bailed a little early). I'll take the .16 move on a 3000 share trade anytime. Now I can make smaller moving trades the rest of the day and just add to my profits.
Again, I only start charting at the open (9:30AM ET), so it was pretty much the first call of the day, which by the way is generally the best call for a larger move.
nyc, looking at the 1 min CSCO chart, I see 2 DMI crossings before the one you took. what am I missing here? thanks
I chart the 1 minute and 2 minute chart. I actually went short @ 19.11 first and covered @ 19.09 , then went long @ 19.15 when the pdi/mdi crossed and adx was heading up. You can see I could've gotten in earlier on the long, but I wanted to see that adx was clearly on an uptrend (then my girl called me and took my attention for a minute and cost me a couple cents )
This is why I asked about premarket data. I am using only regular hour data, and my ADX was above the DMI's from yesterday and did not cross under the PDI until 9:44et and didn't get under both DMI's until about 10:20et. nyc, does your ADX lookback not include the previous day? i.e. on the second bar, your ADX only calculates with the 1 previous bar, on the 6th bar its using the previous 5 etc, until you have 15 min of data. This may explain the difference from what I am looking at (see attachment). Would you consider posting a screen shot to compare it with? Thanks again.