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Directional Movement

  • #301
  • Apr 28, 2009 1:46pm Apr 28, 2009 1:46pm
[quote=CanuckCT;2700584]Exactly Delta....the use of the 8SMA is when you catch a trade that starts to trend.

It's one way to keep you in a trade that really starts to move in your favor. The way I use it is if there are 2 consecutive candles that close on the other side of the 8SMA, you close the trade. So basically you check it every couple of hours when price is near the moving average..

The other thing I look at is significant points of support and resistance using H4 and up and the hourly MACD cross.

tks canuck for your elaborations! really appreciate.
  • #302
  • Apr 28, 2009 2:49pm Apr 28, 2009 2:49pm
Hi, I was silent follwer of your thread. my first post. The system is very profitable if caught at first available signal. Is there any alert signal available for this system. Thanks in advance.

Harry
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  • #303
  • Apr 28, 2009 5:01pm Apr 28, 2009 5:01pm
Quoting sholmes9000
tks once again for your help deltaworld! really appreciate for posting attachment.

and hi to acartwright & tks for replying too.

noted on the dmi & adx.

one quick question, if adx is falling say from 35 to 30 & during this time a dmi crossover happens (with crossover dmi value >20), thereafter adx rebounds from 30 to 30.1....we can still take trade even though the adx are of fairly high value & the jump is a small 0.1, yes? tks

sorry if question sounds illogical but really like your system & still new with it.
Hi Holmes,

I would sya yes you can still take the trade in this instance.

When this happens be careful however and look for any s/r that could hinder the trade.

Note - ADX moving from 30 upwards has less room to move than say ADX rising from 20.

Hope that helps.
  • #304
  • Apr 28, 2009 5:03pm Apr 28, 2009 5:03pm
Quoting balle1973
Hi, I was silent follwer of your thread. my first post. The system is very profitable if caught at first available signal. Is there any alert signal available for this system. Thanks in advance.

Harry
Hi Harry,

I do not have an alert system as such but I have added soemthing that might help.

It shows a green bar when ADX is rising - you will have to manually calculate 3 off the bottom however.

You can use it to eyeball potentials before the hour ends.

Al
Attached File(s)
File Type: mq4 SMC ADX Direction.mq4   4 KB | 433 downloads
  • #305
  • Edited 5:55am Apr 29, 2009 4:58am | Edited 5:55am
Quoting ACartwright
Hi Harry,

I do not have an alert system as such but I have added soemthing that might help.

It shows a green bar when ADX is rising - you will have to manually calculate 3 off the bottom however.

You can use it to eyeball potentials before the hour ends.

Al
Thanks from the core of my heart. Can you explain what do u mean by 3 off the bottom.
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  • #306
  • Apr 29, 2009 5:38am Apr 29, 2009 5:38am
Are we going towards valid buy signal

Thanks

Harry
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  • #307
  • Apr 29, 2009 7:33am Apr 29, 2009 7:33am
Quoting balle1973
Thanks from the core of my heart. Can you explain what do u mean by 3 off the bottom.
Hi Balle,

3 off the bottom means that you can take a trade when ADX is not over 20 as long as it has increased by 3.

I.E. ADX 12.4 to 14.6 to 15.6 would be a valid signal on ADX.
  • #308
  • Apr 30, 2009 6:21am Apr 30, 2009 6:21am
tks acartwright for your reply....
watching euro 1 hr & there's a crossover of dmi with -dmi abt 31 vs +dmi 16.
and adx has also started to rise from 29 to 30 after falling from highs of 40.
macd line also below signal line.
adx not so ideal as it is still quite high but think probably will take this trade again at the close of bar.
  • #309
  • Apr 30, 2009 7:31am Apr 30, 2009 7:31am
as at end of bar, adx just improved from 29.75 to 29.95....very small increase. entry was 1.3287 but stop was just 1.3294 (hi was 1.3293). entered trade & thinking of moving stop higher to prev bar's high of 1.3322.
  • #310
  • Apr 30, 2009 8:38am Apr 30, 2009 8:38am
Quoting sholmes9000
as at end of bar, adx just improved from 29.75 to 29.95....very small increase. entry was 1.3287 but stop was just 1.3294 (hi was 1.3293). entered trade & thinking of moving stop higher to prev bar's high of 1.3322.
Hi Sholmes,

Looks like a a good trade well taken.

The good thing about the adx in this instance is that it has made a nice round bottom.

Also MACD is moving well away from it's signal line.

These trades can be high reward to low risk due to the nature of the signal candle. This one was a hammer but it had made a lower low and a lower high so no reason not to take it.

It would be wary of any s/r however.
  • #311
  • Apr 30, 2009 9:29am Apr 30, 2009 9:29am
hi acartwright....tks once again for your new tip: round bottom adx.

you mentioned abt hammer that had a lower lo, lower hi....in this instance, it's most likely not a valid reversal hammer? was concerned too but seeing momentum skewed more to the downside, so just followed your system & took the trade.

and a very big thank you for your help! very lucky indeed to find your system in this forum. been using dmi for a while but didnt have consistent results as the way you're using it.

you have been trading like this for 4-5 yrs? just out of curiosity....
  • #312
  • Apr 30, 2009 9:53am Apr 30, 2009 9:53am
Quoting sholmes9000
hi acartwright....tks once again for your new tip: round bottom adx.

you mentioned abt hammer that had a lower lo, lower hi....in this instance, it's most likely not a valid reversal hammer? was concerned too but seeing momentum skewed more to the downside, so just followed your system & took the trade.

and a very big thank you for your help! very lucky indeed to find your system in this forum. been using dmi for a while but didnt have consistent results as the way you're using it.

you have been trading like this for 4-5 yrs? just out of...
Hi shomes,

I have been working on strategies based on the dmi/adx for over 4 years now and I beleive that using it with the MACD gives the best results.
  • #313
  • Apr 30, 2009 10:03am Apr 30, 2009 10:03am
Quoting ACartwright
Hi shomes,

I have been working on strategies based on the dmi/adx for over 4 years now and I beleive that using it with the MACD gives the best results.
got it....thanks once again.
  • #314
  • Edited May 4, 2009 12:02am May 3, 2009 7:56pm | Edited May 4, 2009 12:02am
Hi

Are we going towards buy at the candle end. Thanks
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  • #315
  • May 4, 2009 4:00am May 4, 2009 4:00am
1 hr euro chart, -dmi>+dmi....-21.9 vs +10.6, dmi also went from prev 29.9 to current 30.5 (after decling from high of 43), macd also below signal line. entry 1.3289 stop 1.3314 (hi was 1.3313). again dmi still at fairly high value. trade entered, watching stop now.
  • #316
  • May 4, 2009 4:07am May 4, 2009 4:07am
Just entred long on usd chf. My first trade according to this system. Let us see how it goes.
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  • #317
  • May 4, 2009 4:18am May 4, 2009 4:18am
hi acartwright....in one trade 2 weeks earlier, used the entry bar low minus 1 pip as stop for a buy entry, +1.2959, stop 1.2920. however, was stopped out as price traded to a low exactly at stop level, 1.2920 & then it reversed to trade higher.
in your opinion, how do you re-enter long again? or do we just sit out altogether & wait for next signal? tks.
  • #318
  • May 4, 2009 4:25am May 4, 2009 4:25am
Quoting balle1973
Just entred long on usd chf. My first trade according to this system. Let us see how it goes.
hi balle, tks for heads up.
thinking abt entering that chf now too but have euro position....still deciding.
  • #319
  • May 4, 2009 4:55am May 4, 2009 4:55am
have bot back 1 lot at 1.3259 & moved stop loss for the other balance 1 lot to 1.3289 entry.
  • #320
  • May 4, 2009 5:58am May 4, 2009 5:58am
Quoting sholmes9000
hi acartwright....in one trade 2 weeks earlier, used the entry bar low minus 1 pip as stop for a buy entry, +1.2959, stop 1.2920. however, was stopped out as price traded to a low exactly at stop level, 1.2920 & then it reversed to trade higher.
in your opinion, how do you re-enter long again? or do we just sit out altogether & wait for next signal? tks.
Hi Holmes,

In answer to your question I would wait for another valid signal before I would enter again.

Also in regard to stops it is always good to look at other s/r as potential stop points as long as they are int he vacinity of the low of the indicating candle.
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