Thank you both. I'll look more into it. It's intriguing that Realfasttrader.com calculates differently a well known indicator, and even more: the fact that their calculation seem more in tune with the market Kudos to nyc- for fully disclosing a personal winning technique. Few people do it.
Interesting: the way I read the attached chart, CPKI is due for a retracement toward its 22 day EMA, which is in the proximity of its 50 SMA (not on this chart). Chaikin Money Flow as well as other indicators not on this chart show bearish divergences. But the DMI shows a bullish entry point: DI+ crossed above DI- and ADX ticked up from bellow both of them. I know that I have no handle on DMI, but maybe this chart shows that CPKI is at the beginning of an up trend, that starts with a pullback on which to enter at a discount, let's say $30.4-30.5.
I like the ADX/DMI indicator. Many people think indicators are useless, but I find that if you use them in your scanning for candidates, they can be helpful. I never use them for entries, but if you know what u are looking for, they can help give you good candidates. I also use volume, and certain technical setups in conjunction with ADX filtering.
I am using an additional filter that finds a form of consolidation intraday. The idea, (just started using it so not sure if it works), in theory is to find trending stocks that are trading at high holumes and are temporarily resting.
I see this thread popped up again and I have been getting some PMs about this. The answer is yes, I do still use the DMI/ADX indicator for intraday trading. I still use it pretty much the same way I described at the beginning of this thread.
Can you send me or post a scren shot on ADX in your best situation for a buy and a sell ? I trade Forex with ADX (it works well) but never on CSCO or INTC. I like to try it as it appears very interesting.
Four years after this fascinating thread began i would like to repeat what some very wise contributor, nyc-hotshot in this case, posted. I believe Mr. Hotshots words should be considered whenever one is trying to back test a method or "system" by automated means: "I think it would be difficult to back test this considering I am really looking especially for the explosive upside moves on the white (DX) line above the MDI and PDI lines. Real life (human) trading is slightly more subjective, its not as simple as a program saying "if this happens, then do this". I don't believe programmed rules translate to real trading (at least not for me with this strategy).
DMI is a useful little tool to have up on your screen but it lags the actual turn as indicators generally do. It can be good to have as part of your running analysis to stay on top of the days trading action.
I hv found the DMI/ADX an absolute god-send, when combined with the trend index indicator - a sort of MACD color coded oscillator - it seems to work amazingly well with high volume futures and heavily traded stocks - there is a free charts site which publishes the trend index at clickcharts dotcom - I have asked the publisher to add DMI/ADX to his indicator list and am hopeful - would be great to see everything in one place.