a cartwright
Directional Movement 400 replies
MACDForest + Directional Movement System in MetaTrader 5 replies
Directional Movement Index For MT4 0 replies
GBP/USD daily pip movement vs. EUR/USD daily pip movement 3 replies
What DI interval, DX period and smoothing period for directional movement indicator? 5 replies
DislikedI have attached some screen shots so you can see the entries.
I have also put screen shots of when not to trade.
Let me know what you think
AlastairIgnored
DislikedI have been playing around with every type of system for the last couple of years.
However one indicator I have not been able to get away from is Welles Wilders Directional Movement Indicator.
Firstly I know many people are going to say indicators lag - however if you can get on the right side of the trade the battle is almost half won - especially if you have been able to get to break even quickly.
Inspired by Chuck Le Beau's (this is my interpretation of Mr. Le Beaus work only - hopefully this satisfys copyright) teachings on the DMI I have devised a system that seems to work consistently.
I have combined a 14 period DMI with a standard 12,26,9 MACD.
The rules are as follows:
Buy
Buy when the following occurs.
1. +DMI is greater than the -DMI - Preferable to have the +DMI greater than a level of 20
2. The ADX has risen since the last bar
3. ADX is above -DMI but below +DMI
4. MACD agrees with the move - i.e. MACD is above signal line
Exit
1. Go to break even when 20 pips are made - this can be changed depending on pair
2. Exit when ADX starts to fall
3. Try to lock in profits when ADX becomes > than +DMI
Sell
Sell when the following occurs.
1. -DMI is greater than the +DMI - Preferable to have the -DMI greater than a level of 20
2. The ADX has risen since the last bar
3. ADX is above +DMI but below -DMI
4. MACD agrees with the move - i.e. MACD is above signal line
Exit
1. Go to break even when 20 pips are made - this can be changed depending on pair
2. Exit when ADX starts to fall
3. Try to lock in profits when ADX becomes > than -DMI
I have attached some screen shots so you can see the entries.
I have also put screen shots of when not to trade.
Let me know what you think
AlastairIgnored
DislikedACartWright,
I have been using a similar strategy but ADX (10) instead of 14 and yes, it works consistently.Ignored
DislikedJD - do use the rules that I use?
And also have you come up with a good exit.
I believe when the ADX becomes greater than the dominant DMI you should look to take profits.Ignored
DislikedADX base trading is a trending strategy, so is super laggy. but if you are a directional trader it should work.
Check this out:
http://www.earnforex.com/blog/2008/0...trategy-ebook/
enjoy.Ignored
DislikedADX base trading is a trending strategy, so is super laggy. but if you are a directional trader it should work.
Check this out:
http://www.earnforex.com/blog/2008/0...trategy-ebook/
enjoy.Ignored
DislikedJD - do use the rules that I use?
And also have you come up with a good exit.
I believe when the ADX becomes greater than the dominant DMI you should look to take profits.Ignored