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criteria - - weekly chart has an adx of less than 25
- daily adx is less than 25 and price has a period of low adx consolidation of at least 20 bars
- price breaks out above daily resistance and adx rises above 25 on the daily chart
- price retraces down to the 20 ema on the daily chart
- the +dmi crosses (or is above) the -dmi on the weekly by the time price retraces to the daily 20 ema
manu
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Rank: Advanced Member
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ktimptim1 wrote:
criteria -
- weekly chart has an adx of less than 25
- daily adx is less than 25 and price has a period of low adx consolidation of at least 20 bars
- price breaks out above daily resistance and adx rises above 25 on the daily chart
- price retraces down to the 20 ema on the daily chart
- the +dmi crosses (or is above) the -dmi on the weekly by the time price retraces to the daily 20 ema
manu
Hi manu, <Content edited by MetaStock Online Community Administrator> You can help yourself in MS easily.
Open a chart in MS, apply Clean template, arrange your two charts as Column, switch the left one to Weekly periodicity and apply your Indicator.
Save As a layout first, and then Save As a template so you can apply your choice of Indicators to any other chartable security.
ABOVE ALL: start getting serious about technical analysis! ... [:)]
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Rank: Advanced Member
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Hi timtim,
1). In your criteria, you mention price dips to 20-day EMA. You can use this rule alone, as a separate system. There is no point in mixing it with Directional Movement system which has plenty of beautiful patters that could be traded by themselves.
Except for dynamic support/resistance areas, I do not believe that EMAs can show you that which the DM system can’t, but I admit that’s my opinion.
2). Here below you can see a screenshot of weekly DM and daily DM system side by side. Very basic style.
Many patterns will reveal themselves to you. Like with all patterns, if you don’t see it, don't look for it, it’s not there.
Another big issue for wannabe chartists is that they want more than they in fact can do, meaning that they tend to see lots of things which they think are important when in reality they are not, and then try to dicover rules that are not needed. Make sure this bug won’t bite you.
I do not believe that you need to use special DM (or ADX the way you call it) with weekly code.
You always have to keep things simple, unless you are looking for trouble …
All you need to know is that ADX when increased to more than 50 produces a straight horizontal line, losing its charm. (50 - 100 depending on security and loaded data).
Open your charts and look well at them until your eyes cross. Spending time eyeballing the charts is what will make you think, draw your conclusions and hopefully progress.
Never trade directly what you see. Paper trade it first for as long as you wish to see what happens to you. At least in the beginning, there is a great negative difference between what you see, the thoughts that cross your mind, the actions you choose and your account. Something will always work hard to diminish your account: it’s called naivety, stupidity, impatience.
The chart will expire in six months from today.
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