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Average Directional Index (ADX)

It may not display this or other websites correctly. You should upgrade or use an alternative browser. Discussion in ' Technical Analysis ' started by nyc-hotshot , Aug 22, Log in or Sign up. I had mentioned the DMI in a Stochastics thread and got like 10 people mailing me about it, so I figured the best way to discuss it would be a new thread.

The only additional indicator I use is Nasdaq futures. I have used this theory for day trading for several years and I consistently make money. I am profitable almost everyday, although I have had a few very selodom net negative days when you count commissions. I make the ADX line white in color, the PDI line red, and the MDI line green.

I use the PRO software offered by Realfasttrader. This is how I do it: When white ADX crosses the other lines and is at the top and green MDI is at the bottom red in the middle , it's a buy.

DMI/ADX consistently works | Elite Trader

White on top red PDI on the bottom green in the middle , it's a sell. Often the simplest things work best and this seems simple and it is, but it works very good. I consistently make between.

I usually go for more around the open maybe. I ONLY trade widely traded Nasdaq stocks, like CSCO and INTC. What time frame chart do you use?

ADX Indicator - Average Directional Movement Index

Also do you use a 14 period ADX? I use a 1 minute chart and a 2 minute chart on the stock obviously both have the DMI on them and a 2 minute Nasdaq futures chart. The 1 minute chart generally makes the call and the 2 minute confirms it. I use a smooth period of I'm telling you DMI works way better than MACD and Stochastics in my experience. The DMI works on all levels of chart: I don't know why more people haven't been discussing this. Do you just simply buy when the line is crossed There is no price correlation necessary IMO.

What you need to see is ADX white line break above the middle line MDI or PDI and whichever line is on the bottom MDI green and PDI red determines the call. I set them up like MDI green and PDI red because it makes sense in my mind. Look at when DMI makes the call and what the stock did.

The percentage of times that it makes the correct call is astonishing. When white ADX crosses the other lines and is at the top and green MDI is at the bottom red PDI in the middle , it's a buy.

White ADX on top red PDI on the bottom green MDI in the middle , it's a sell. If you don't mind, could you provide some detail as to what exactly you like to see?

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ADX - Using The ADX Indicator To Find And Trade Trends

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