Wilder's DMI

[Handle123]

Wilder's ADX/DMI+/DMI- are about the best single indicator set-up invented. But don't accept whatever lookback parameters were defaulted on your platform: experiment and find what is best for your underlying.

(And how do you know when you've got the best set-up? Because you can put up a piece of paper over the candles, and describe what the candles must be according to what the ADX and DMIs show you.)

From the questions/observations you've posted, I'm sure you will see very plain, and very robust entry/exit indications from those three squiggly lines bopping all 'round on your screen. Do NOT be concerned if you don't see your trigger points reflected anywhere else on the web. Look at your own 1minute or 1hour graphs going back, add up the entry/exit $$$ (take 'em to the next candle, just to be fair!), and develop your *own* protocol.

Sorry, in my testing this +\- crap, spent enough time I could have walked cross the states. Not to say others didnt found useful. The ADX is ok I guess.

I am a bit different in half my systems use variety of indicator entry generated but optimized over 3 timespans so it don't go with could be best but the "mean". I don't believe in one indicator for trading entire chart as price action when studied often best for exits. Indicators best used to indicate and stats give me a yes no.

Enjoy the ride

 

[vanv0029]

The IB version of Wilders ADX/DMI is usually pretty good, but it was clueless
about today's 10% (3.22 to 2.96) March NG futures fall. See IB hour chart
with ADX/DMI indicator on the bottom. ADX did rise. DMI+ was low but
constant. There was some DMI- but it was also constant. The Wilder
indicator was worthless on such a huge NG price fall. Maybe because the
end of fossil fuel fanatics were active.

 

[tommcginnis]

The IB version of Wilders ADX/DMI is usually pretty good, but it was clueless
about today's 10% (3.22 to 2.96) March NG futures fall. See IB hour chart
with ADX/DMI indicator on the bottom. ADX did rise. DMI+ was low but
constant. There was some DMI- but it was also constant. The Wilder
indicator was worthless on such a huge NG price fall. Maybe because the
end of fossil fuel fanatics were active.

It's mathematics -- but G.I.G.O.
If you don't adjust it to fit the market -- Guess what? That's right: it won't fit the market.

Remember this: When you really learn the ADX/DMIs, you can draw the operative candles just be looking at it. That's some serious indicatornessishness.