Stocks & Commodities V. 30:11 (12-20): Identify The Start Of A Trend With DMI by BC Low, CMT

Stocks & Commodities V. 30:11 (12-20): Identify The Start Of A Trend With DMI by BC Low, CMT
Item# 422LOWPDF
$3.95
Availability: In Stock

Product Description

Identify The Start Of A Trend With DMI by BC Low, CMT

Improve on certain directional movement index signals such as identifying the start of a trending move and picking market tops and bottoms.

Directional movement index (DMI) is a long-accepted and popular technical indicator created by J. Welles Wilder to establish the existence of a trend in a market using three lines ADX, +DI, and ‑DI. This article shows that the same three lines can be used to significantly improve on certain DMI signals to identify the start of a trending move and to pick market tops and bottoms. The new variations in this article feature clusters of three ADX lines, three +DI lines, and three ‑DI lines instead of the original three lines.

DIRECTIONAL MOVEMENT INDEX

ADX signal: Average directional movement index (ADX) signals a trending market when the ADX (14 periods) is above level 20 and rising. But ADX itself does not indicate whether the market is trending up or down. That signal is provided by +DI and ‑DI.

After ADX has risen to the 50 level and turns down, its decline represents a retracement. If there was an uptrend previously, then the declining ADX signals a correction down. If there was a downtrend previously, then the declining ADX signals a correction up.

When ADX declines to below 20 again, the market is nontrending until it rises above 20. Then the market trends again (Figure 1).




FOR THOSE ORDERING ARTICLES SEPARATELY:
*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at store.traders.com users can view the S&C Digital Edition in the subscriber's section on Traders.com.




Take Control of Your Trading.
Professional Traders' Starter Kit
All these items shown below only $299.99!
  • 5-year subscription to Technical Analysis of STOCKS & COMMODITIES, The Traders' magazine. (Shipping outside the US is extra. Washington state addresses require sales tax based on your locale.)
  • 5 year access to S&C Archive
  • 5 year access to S&C Digital Edition
  • 5-year subscription to Traders.com Advantage.
  • 5-year subscription to Working Money.
  • Free book selection.
  • Click Here to Order