ADX & DMI
I have a question for the
author of “Identify The
Start Of A Trend With
DMI” from your November
Having just recreated the worksheet
shown in the article’s sidebar beginning
on page 18 of the November 2012 issue,
I am not clear on which columns are to
be graphed. Please help with this.
As for the author’s technique, it looks
quite interesting. Has the author explored
using this technique intraday?
Thanks, and my apologies for my lack
Author BC Low replies:
I’m not sure what software you are using,
but I use MetaStock, and I simply
add the ADX, +DI, and -DI lines into
three windows, and you are ready to
read the signals.
I do not have software that can create
the three lines intraday. As such, my
techniques tend to apply to end-of-day
charts. In general, intraday signals are
trickier, I feel.
The sidebar on ADX merely shows how
to calculate the ADX. It does not reflect
or implement the system discussed by
Low in his article.
For an example of how to implement
BC Low’s technique in Microsoft Excel
spreadsheet software, please refer to the
Traders’ Tips section of our November
2012 issue and see Ron McAllister’s contribution
on page 77 of that issue. This is
also available in the Traders’ Tips area of our website at http://www.traders.com/
2012 (or click on the Traders’
Tips link from our homepage at Traders.
com and scroll down to the “Microsoft
Excel: November 2012” item, or type
“November 2012” in the title filter search
box in the Traders’ Tips area).