My Options Play

Discussion in 'Options' started by Multioption, Oct 3, 2005.

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  1. Very vague description.
     
    #391     Oct 29, 2005
  2. yes
     
    #392     Oct 29, 2005
  3. qiuniu

    qiuniu

    Did you write your own software?

    Or what do you use?
     
    #393     Oct 30, 2005
  4. Thanks so much, cnms2. I consider DMI the best indicator ever developed in the trading parlance.

    I should get back to trading this week.
     
    #394     Oct 30, 2005
  5. cnms2

    cnms2

    :)

    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

     
    #395     Oct 30, 2005
  6. cnms2

    cnms2

    #396     Oct 30, 2005
  7. cnms2

    cnms2

    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.
     
    #397     Oct 30, 2005
  8. HUM is ripe now. We may want to sell ATM options trading out 1-2 months that carry high time value.
     
    #398     Oct 31, 2005
  9. 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
     
    #399     Oct 31, 2005
  10. cnms2,

    Any update on Bernie Schaeffer's contrarian trade - VZ?
     
    #400     Oct 31, 2005
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