DMI/ADX consistently works

[Jeanmichel]

Version77

Winners in trading are studying every day for reach a better
trading but LOSERS they haven't the time for it !!!!!


Cheers
Jeanmichel

 

[WarEagle]

Thanks JM, much clearer now.

 

[version77]

Quote from Jeanmichel:

Version77

Winners in trading are studying every day for reach a better
trading but LOSERS they haven't the time for it !!!!!


Cheers
Jeanmichel

I always thought it was the opposite? Losers are always looking
for something that will work...

Cheers

V77

 

[T-REX]

Hi JM

Have you back tested your trading Idea?
Have you ever traded this system in realtime?

Looks very interesting. I must say that it looks very confusing though. But if it works for you.......GREAT!!!

p.s. I have found that the old fashion way of reading the ADX works best for me. ADX +30 = "TRENDING MKT"
ADX below 30 = "RANGE MKT".......on daily charts that is.




.........but hey what do I know. I'm hardley ever right!

 

[traderkay]

C'MON MAN BE A MAN AND ASK IN PUBLIC PLUS WHAT DO U THINK I MEANT BY WHAT I SAID, IF YOU CANT FIGURE IT OUT YOU PROLLY NOT SMART ENUF FOR TRADING ANYWAY.


RE: Jean
Hi-

I'm very short on time and would like to know whether this guy is likely or unlikely to have come up with a viable method.

What do you know that can help me.
I really would like some input before trying to by eye back test this method.

Thanks,

Himself

 

[sid vicious]

Quote from traderkay:

C'MON MAN BE A MAN AND ASK IN PUBLIC PLUS WHAT DO U THINK I MEANT BY WHAT I SAID, IF YOU CANT FIGURE IT OUT YOU PROLLY NOT SMART ENUF FOR TRADING ANYWAY.

give da cuz uh break, he just don' know. what'chew trippin foo' ??

 

[nyc-hotshot]

Quote from Jeanmichel:


The 3 horizontal lines in the ADX/ADXR indicator are set on :

20 - 30 - 40, but they are overlayed on the +DMI and -DMI
and the scale you see in the indicator (right) is the scale of the
yellow +DMI, that is not my fault, that is so with Metastock.
(you don't see the scale of -DMI and ADX and ADXR).

Now for the first trade (Nr. 1) you see that the ADXR is FLAT
between 16.30 and 16.37, I take the trade when both ADX and
ADXR are rising UP under the green 20 line and even the yellow +DMI is rising UP at 16.40

The second trade is for me a good trade because at 17.11
both ADX and ADXR are rising UP under the green 20 line, even the yellow +DMI is rising UP., also trade 3 is a good one both ADX and ADXR are UP under the green 30 line and the red -DMI is rising

I trade the DAX only till 18.00 PM, so I didn't take the trade
at 18.07 (all European bourse are closed at that time except
Frankfurt !!!!), but I must say that 18.07 is for me not a good trade because ADX was near ¨(NOT UNDER) the 20 line and rising UP at 18.02 but not the ADXR he was descending and the most important of all, he was not under the green 20 line before 18.07 !!!

IMPORTANT FOR A GOOD TRADE !!!!

ADX and ADXR must BOTH UNDER the green 20 line, see trade 1 and 2 (or green 30 line - see trade 3) AND BOTH RISING UP !!!!
and in the price chart the candle MUST CLOSE ABOVE (LONG) or UNDER (SHORT) the BLUE 13 EMA !!!!!

Seems like you're making it alot more complicated than it needs to be.
IMO, the easiest way to look at the chart for ADX/DMI is:
ADX on top, PDI in middle, MDI at the bottom = buy signal
ADX on top, MDI in middle, PDI at the bottom = sell signal

It is best to enter just as the ADX crosses the other lines to the upside. That's it simple and effective. Don't make it more difficult then it has to be.

A couple trades I made using the simple method today:
9:32AM Short CSCO @ 21.24
9:36AM Cover @ 21.17 (profit .07)

10:45AM Short CSCO @ 21.26
10:58AM Cover @ 21.16 (profit .10)

I made several more for smaller gains. Actually as I write this I just covered a short from a few minutes ago (short @ 21.15, cover @ 21.11).

 

[Jeanmichel]

Nyc-hotshot,

Is it possible to post a chart please, so that other people
understand what you mean.

Seems like you're making it alot more complicated than it needs to be.
IMO, the easiest way to look at the chart for ADX/DMI is:
ADX on top, PDI in middle, MDI at the bottom = buy signal
ADX on top, MDI in middle, PDI at the bottom = sell signal

It is best to enter just as the ADX crosses the other lines to the upside. That's it simple and effective. Don't make it more difficult then it has to be.

Will you indicate the above in the chart please !!!!

Thank you very much

Cheers
jeanmichel

 

[nyc-hotshot]

Quote from Jeanmichel:

Nyc-hotshot,

Is it possible to post a chart please, so that other people
understand what you mean.

Seems like you're making it alot more complicated than it needs to be.
IMO, the easiest way to look at the chart for ADX/DMI is:
ADX on top, PDI in middle, MDI at the bottom = buy signal
ADX on top, MDI in middle, PDI at the bottom = sell signal

It is best to enter just as the ADX crosses the other lines to the upside. That's it simple and effective. Don't make it more difficult then it has to be.

Will you indicate the above in the chart please !!!!

Thank you very much

Cheers
jeanmichel

I'm not sure how good this will come out, but here is the chart I use from 9AM-Noon today:

 

[Stok]

One thing I have noticed on the 15 period, is that the way ST plots the ADX line is way different than any other charting software...Have you looked/noticd that? Your charts seem to have a much faster ADX line going back and forth. I have downloaded the ST trial and have been watching it. One other question....do u plot the ADX/DMI on your futures chart and do u use the futures for entry or exit confirms? or both?

Thanks!