Thanks so much, cnms2. I consider DMI the best indicator ever developed in the trading parlance. I should get back to trading this week.
Interesting. This confirmed my observation ... http://www.incrediblecharts.com/technical/dms_construction.htm#Note *Welles Wilder's Indicators Users should beware, when setting time periods for Welles Wilder's indicators, that he does not use the standard exponential moving average formula. For example, Wilder describes 1/14 of today's data + 13/14 of yesterday's average as a 14-day exponential moving average. If you refer to Exponential Moving Averages you will see the formula equates to a 27-day exponential moving average. Indicators affected are: Average True Range Directional Movement System Relative Strength Index Twiggs Money Flow We recommend that users try shorter time periods when using one of the above indicators. For example, if you are tracking a 30-day cycle you would normally select a 15-day Indicator Time Period. With the DMS, adjust the time period as follows: DMS time period = (n + 1) / 2 = (15 + 1) / 2 = 8 days
Several people posted calendar spreads on this thread, so I thought the following link might be of interest: http://finance.groups.yahoo.com/group/OptionClub/message/5362 Although Michael explains two good ways to trade calendar spreads, his explanation kind of re-enforces my dislike for them.
Multi, Could you please share a little more about how you're using DMI in your trading? I.e. in all time frames or only one, which? I think you mentioned using 14 bars as parameter, but could you give a little more about what are you looking for: crossings, slopes, levels, relation between +DI, -DI, ADX? Is there a way to plot the DX in Prophet Charts, not the ADS? Is it possible to vary independently the +/-DI number of bars, and the ADX number of bars? The "DMI/ADX consistently works" thread proved to be based on a confusion: either nyc-...'s software had a bug in the ADX calculation, or he didn't quite know what he was using.
My forecast for monday 31st October was: BRCM-UP VZ-UP KCI-bearish HUM-UP CVX-UP LYO-Track sideways but might in addition make a small higher high but still a sideways tren evident. Results as of 10:20 A.M. Central Time monday 31st october BRCM is UP VZ is UP KCI - showing bearish signs. I still maintain it is bearish and will indicate so before the day ends. HUM is UP CVX is UP LYO-made a higher high but before the day is over I still then it will look like a sideways track with a small higher high however I could be wrong on this one