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Directional Movement

  • #361
  • May 13, 2009 12:40am May 13, 2009 12:40am
Quoting ACartwright
Hi holmes,

1. MACD above signal line and above zero - strong upward potential
2. MACD above signal line and below zero - upward potential but could be a pull back - I normally check price action to see if it has strong upward potential or if it is going sideways.
3. MACD below signal line and below zero - strong downward potential
4. MACD below signal line and above zero - possible sideways or retracement. Look at PA to confirm.

Hope that helps.
tks once again!
  • #362
  • May 13, 2009 2:20am May 13, 2009 2:20am
1. MACD above signal line and above zero - strong upward potential
2. MACD above signal line and below zero - upward potential but could be a pull back - I normally check price action to see if it has strong upward potential or if it is going sideways.
3. MACD below signal line and below zero - strong downward potential
4. MACD below signal line and above zero - possible sideways or retracement. Look at PA to confirm.

Hope that helps.[/quote]

hi acartwright, just a general question.
in trying to access whether price has any potential move upward/downward or going sideways, what can one look at (indicators?)? how do you normally access such situations? by looking at pure price action?
tks....
  • #363
  • May 13, 2009 4:13am May 13, 2009 4:13am
Quoting sholmes9000
1. MACD above signal line and above zero - strong upward potential
2. MACD above signal line and below zero - upward potential but could be a pull back - I normally check price action to see if it has strong upward potential or if it is going sideways.
3. MACD below signal line and below zero - strong downward potential
4. MACD below signal line and above zero - possible sideways or retracement. Look at PA to confirm.

Hope that helps.
hi acartwright, just a general question.
in trying to access whether price has any potential move upward/downward or going sideways, what can one look at (indicators?)? how do you normally access such situations? by looking at pure price action?
tks....[/quote]

Hi homes,

Good question.

The reason we trade a rise in the adx over 20 or 3 off its bottom is to make sure we are going with the overall direction.

Normally if price is going sideways adx will be flat, under 20 or decreasing from a high level.

ADX and DMI is based on directional movement from bar to bar.

You can always draw a few trendlines through swing lows and highs also to get an overall picture.
  • #364
  • May 13, 2009 8:08am May 13, 2009 8:08am
You can always draw a few trendlines through swing lows and highs also to get an overall picture.[/quote]

tks again!
  • #365
  • May 13, 2009 8:43am May 13, 2009 8:43am
Heres a trade I am currently in.

ADX had just creepd over 20 but it had come from 17.5 so was happy to take it.

Currently at b/e.
Attached Image (click to enlarge)
Click to Enlarge Name: gbp-usd trade short.gif Size: 51 KB
  • #366
  • May 13, 2009 9:20am May 13, 2009 9:20am
Quoting ACartwright
Heres a trade I am currently in.

ADX had just creepd over 20 but it had come from 17.5 so was happy to take it.

Currently at b/e.
great job!
  • #367
  • May 13, 2009 1:41pm May 13, 2009 1:41pm
Hi guys,

gbp/usd got out for 15 pips - turned around pretty quick and I was a bit slow.

Did however have 40 pips of success with cad/jpy which I opened before going to the gym.

I had put a limit order on the next bit of support I could find.

When I got back it had made 42 pips.

I have attached a screenshot.
Attached Image (click to enlarge)
Click to Enlarge Name: cad-jpy trade short.gif Size: 53 KB
  • #368
  • May 13, 2009 11:27pm May 13, 2009 11:27pm
Quoting ACartwright
Hi guys,

gbp/usd got out for 15 pips - turned around pretty quick and I was a bit slow.

Did however have 40 pips of success with cad/jpy which I opened before going to the gym.

I had put a limit order on the next bit of support I could find.

When I got back it had made 42 pips.

I have attached a screenshot.

superb!
  • #369
  • May 14, 2009 4:11am May 14, 2009 4:11am
hi acartwright, just need your opinion....
when trading gbp/usd, shld we also apply indicating bar hi/lo as stops? or shld one use swing hi/lo as stops? cos thot that gbp/usd is quite volatile & better to use a bigger buffer for stops? tks....
  • #370
  • May 14, 2009 7:39am May 14, 2009 7:39am
Quoting sholmes9000
hi acartwright, just need your opinion....
when trading gbp/usd, shld we also apply indicating bar hi/lo as stops? or shld one use swing hi/lo as stops? cos thot that gbp/usd is quite volatile & better to use a bigger buffer for stops? tks....
Hi holmes,

You can put your stops where you feel comfortable.

I place them at the high or low of the indicating candle. A trend is determined by lower lows and lower highs for short and vice versa for long.

If you place your stop at the high or low in theory you should not be stopped out if you have entered on a trend.

Hope that makes sense but it is really down to you.
  • #371
  • May 14, 2009 8:20am May 14, 2009 8:20am
Quoting ACartwright
Hi holmes,

You can put your stops where you feel comfortable.

I place them at the high or low of the indicating candle. A trend is determined by lower lows and lower highs for short and vice versa for long.

If you place your stop at the high or low in theory you should not be stopped out if you have entered on a trend.

Hope that makes sense but it is really down to you.
ok tks....
  • #372
  • May 14, 2009 11:31pm May 14, 2009 11:31pm
hi acartwright....just a question. when there's dmi crossover, do we need to observe the 'extreme point rule'? tks....
  • #373
  • May 15, 2009 11:54am May 15, 2009 11:54am
Hi holmes,

The extreme point rule is kind of disregarded as 99% of the time with a rising adx the price goes past the extreme point of the dmi cross.

Wilder introduced this for those persons just trading the dmi cross to cut down on whip saws. ADX was alter added.

If you want to include it in this strategy please do so.
  • #374
  • May 18, 2009 1:24am May 18, 2009 1:24am
Quoting ACartwright
Hi holmes,

The extreme point rule is kind of disregarded as 99% of the time with a rising adx the price goes past the extreme point of the dmi cross.

Wilder introduced this for those persons just trading the dmi cross to cut down on whip saws. ADX was alter added.

If you want to include it in this strategy please do so.
ok....tks.
  • #375
  • May 18, 2009 3:44am May 18, 2009 3:44am
anyone try this EA based on this strategy
Attached File(s)
File Type: mq4 ADX_Trader.mq4   4 KB | 419 downloads
  • #376
  • May 18, 2009 7:36am May 18, 2009 7:36am
Quoting doshur
anyone try this EA based on this strategy
never....is it just based purely on dmi crossovers?

tks....
  • #377
  • May 18, 2009 7:39am May 18, 2009 7:39am
on eur 1 hr....bullish dmi crossover (+dmi 24, -dmi 12.5), adx went to 31.1 from 29.9 after falling from highs of 60. entry was 1.3496 with stop at 1.3462. trade hasnt developed over the last 40 mins or so....thinking of liquidating soon.
  • #378
  • May 18, 2009 1:06pm May 18, 2009 1:06pm
Quoting sholmes9000
on eur 1 hr....bullish dmi crossover (+dmi 24, -dmi 12.5), adx went to 31.1 from 29.9 after falling from highs of 60. entry was 1.3496 with stop at 1.3462. trade hasnt developed over the last 40 mins or so....thinking of liquidating soon.
Hi holmes,

Are you still in this trade?

Entry at 1.3496 is only 4 away from a round number so you have to be careful.

If you are still in you could be up.
  • #379
  • May 19, 2009 12:01am May 19, 2009 12:01am
Quoting ACartwright
Hi holmes,

Are you still in this trade?

Entry at 1.3496 is only 4 away from a round number so you have to be careful.

If you are still in you could be up.
yes still in trade....but was tempted to get out cos of low volatility. however, when thinking abt it, price went down quickly but luckily just short of stop level 1.3462. squared off 1 lot at 1.3526 & has moved bal 1 lot to 1.3526 stop. and now just entered another long (1 lot only this time as it is before ldn open and nearing res)....bullish dmi crossover, +dmi 21.6 v -dmi 12.1, however, adx just inched higher from 27.51 to 27.56 after declining from near 39. macd also above signal line....entry 1.3569 stop 1.3551.
  • #380
  • May 19, 2009 2:23am May 19, 2009 2:23am
Quoting sholmes9000
and now just entered another long (1 lot only this time as it is before ldn open and nearing res)....bullish dmi crossover, +dmi 21.6 v -dmi 12.1, however, adx just inched higher from 27.51 to 27.56 after declining from near 39. macd also above signal line....entry 1.3569 stop 1.3551.
unfortunately got stopped out at 1.3551....
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