DMI/ADX consistently works

Yes. No significance. I just picked a random day on my charts.

 

Ken

How do you feel about the pv indicator (price times volume) as a substitute for volume alone.

 

Thanks WarEagle.

 

You may want to check your data source. The ES was higher that day.

 

I'm attaching below a screen shot of the DMI indicator and showme study on a 2min chart of QQQ. The TradeStation 7 code for the ShowMe study is below.

There are probably other discretionary and non-discretionary rules that are needed for the entry signal alone, not to mention the absolutely essential profit target, trailing stop and loss stops.

Any comments/suggestions would be greatly appreciated.


inputs:
Length( 15 ),
ADXTrend( 25 ) ;

variables:
oDMIPlus( 0 ),
oDMIMinus( 0 ),
oDMI( 0 ),
oADX( 0 ),
oADXR( 0 ),
oVolty( 0 ) ;

Value1 = DirMovement( H, L, C, Length, oDMIPlus, oDMIMinus, oDMI, oADX, oADXR,
oVolty ) ;

if oADX crosses above oDMIPlus and oDMIPlus > oDMIMinus then plot1(low - (low*.001),"Buy",blue,default,5);
if oADX crosses above oDMIMinus and oDMIMinus > oDMIPlus then plot2(high + (high*.001),"Short",magenta,default,5);

 

One of the day trading strategies I created used SK-SD, MACD and ADX. The only thing that made the first 2 indicators useful at all was ADX. I came to find that the system was no good in the chop so ADX was the answer. 70% winning days with a 2-1 ratio was/is the average over a period of 100 trading days with no more than 3 trades per day. If you haven't taken a closer look at ADX you should!

 

I personally prefer using a moving average on the DMI+ and DMI- lines. Signals become a lot more clearer for me. Try it out.

 

great thread about the DMI. THANKS FOR SHARING.

 

Was probably 2002. Don't feel like looking.

 

Precisely what a friend of mine has told me. Great as a filter for good entries.