DMI/ADX consistently works

[goldenarm]

Quote from nyc-hotshot:


To answer your question, yes it does work for "scalping". The majority of my trades I'm only going for .02 - .04.

To scalp for a small move (under a nickel), I just read the tape and Level 2. I'm usually correct around 70% of the time. Why would you need other indicators? I would think the indicators you guys are talking about are for longer-term trades with much higher profit potential.

 

[dbphoenix]

Quote from goldenarm:



To scalp for a small move (under a nickel), I just read the tape and Level 2. I'm usually correct around 70% of the time. Why would you need other indicators? I would think the indicators you guys are talking about are for longer-term trades with much higher profit potential.

I don't know how many people in this thread are scalping. I'm not. I'd rather go for larger moves.

 

[Ken_DTU]

i like to go for .3 to .5 for most, occasional .6-.7 type

ken

 

[nyc-hotshot]

Quote from goldenarm:



To scalp for a small move (under a nickel), I just read the tape and Level 2. I'm usually correct around 70% of the time. Why would you need other indicators? I would think the indicators you guys are talking about are for longer-term trades with much higher profit potential.

The reason I do DMI "scalping", is because I am right way more than 70% of the time using DMI. Plus many times a DMI trade will shoot right up and you end up with a far better move.

Ex. This morning bought CSCO @ 19.15 at 9:41AM and sold it @ 19.31 at 9:58AM (and I actually got in late and bailed a little early). I'll take the .16 move on a 3000 share trade anytime. Now I can make smaller moving trades the rest of the day and just add to my profits.

 

[hit_n_run]

Quote from nyc-hotshot:



The reason I do DMI "scalping", is because I am right way more than 70% of the time using DMI. Plus many times a DMI trade will shoot right up and you end up with a far better move.

Ex. This morning bought CSCO @ 19.15 at 9:41AM and sold it @ 19.31 at 9:58AM (and I actually got in late and bailed a little early). I'll take the .16 move on a 3000 share trade anytime. Now I can make smaller moving trades the rest of the day and just add to my profits.

did you trade the DMI cross only here? dont see an ADX cross?

thanks

 

[nyc-hotshot]

Quote from hit_n_run:



did you trade the DMI cross only here? dont see an ADX cross?

thanks

Again, I only start charting at the open (9:30AM ET), so it was pretty much the first call of the day, which by the way is generally the best call for a larger move.

 

[hit_n_run]

Quote from nyc-hotshot:



Again, I only start charting at the open (9:30AM ET), so it was pretty much the first call of the day, which by the way is generally the best call for a larger move.

nyc,
looking at the 1 min CSCO chart, I see 2 DMI crossings before the one you took. what am I missing here?

thanks

 

[nyc-hotshot]

Quote from hit_n_run:



nyc,
looking at the 1 min CSCO chart, I see 2 DMI crossings before the one you took. what am I missing here?

thanks

I chart the 1 minute and 2 minute chart. I actually went short @ 19.11 first and covered @ 19.09 , then went long @ 19.15 when the pdi/mdi crossed and adx was heading up. You can see I could've gotten in earlier on the long, but I wanted to see that adx was clearly on an uptrend (then my girl called me and took my attention for a minute and cost me a couple cents )

 

[WarEagle]

Quote from hit_n_run:



did you trade the DMI cross only here? dont see an ADX cross?

thanks

This is why I asked about premarket data. I am using only regular hour data, and my ADX was above the DMI's from yesterday and did not cross under the PDI until 9:44et and didn't get under both DMI's until about 10:20et.

nyc, does your ADX lookback not include the previous day? i.e. on the second bar, your ADX only calculates with the 1 previous bar, on the 6th bar its using the previous 5 etc, until you have 15 min of data. This may explain the difference from what I am looking at (see attachment). Would you consider posting a screen shot to compare it with?

Thanks again.

 

[hit_n_run]

Quote from nyc-hotshot:



I chart the 1 minute and 2 minute chart. I actually went short @ 19.11 first and covered @ 19.09 , then went long @ 19.15 when the pdi/mdi crossed and adx was heading up. You can see I could've gotten in earlier on the long, but I wanted to see that adx was clearly on an uptrend (then my girl called me and took my attention for a minute and cost me a couple cents )

nyc,
ok , now I see that you took the 19.15 long from the 2 min chart.

thanks again