NYC, In TradeStation the DMI indicator has DMI+ amd DMI- listed. Am I correct in the following: PDI = DMI+ (would be plotted in red) MDI = DMI- (would be plotted in green) Thanks.
I must be confused. Here is a 5M chart of the ES. DMI settings are: Length 15, Trend 25 White line moves above both lines. Red on bottom on both of these set ups. This is a sell right?? Price moved up both times. I have something discomboobaloated.
Hello VisionTrader, I guess P stands for Plus (+), and M stands for Minus (-). He switched colors so that the bottom line indicates if he either should buy (green) or sell (red). Not sure about the settings, I use SierraChart and I can setup ADX with DX Length and DX Mov Average Length, and I can setup DMI with Length...?? Is then everything set to 15?
For those of you with TradeStation, here is a PaintBar that will plot the bar red when the sell signal is in effect and blue when the buy signal is in effect. Just be aware that it plots any occurance of ADX > the DM's and not just on a new cross, so not all plots would be valid trade signals. But it does make it easier to find the entries visually. Inputs: Length(15); Condition1 = ADX(Length) > DMIPlus(Length) and DMIPlus(Length) > DMIMinus(Length); Condition2 = ADX(Length) > DMIMinus(Length) and DMIMinus(Length) > DMIPlus(Length); If Condition1 OR Condition2 Then Begin value1 = high; value2 = low; PlotPaintBar(value1, value2, "PaintBar"); If Condition1 Then SetPlotColor(1, Blue) Else If Condition2 Then SetPlotColor(1, Red); End;
Hi traders - you might find some of the ADX/DMI volume breakout tips in this recent article I wrote interesting: http://www.esignal.com/education/likepro/strategy/volume/default.asp I like to see the ADX line >40 and over both DMIs on increasing volume at time of entry for a volatility/volume+ breakout trigger. ken
I'll have my programmers automate nyc-hotshot's DMI/ADX technique and see if it really works consistently. I will advise this thread on the out come.