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DMI

Trading the DMI with ADX, TSI and EMA (BTCUSD)Continuing with using the ADX/DMI on a daily chart to trigger a trade with the 4 hour chart to refine the entry, I’ve marked up the recent BTCUSD action similar to the wheat chart in previous article. As you can see from the daily chart, price dropped on the 4th causing the DI’s to swap dominance on the DMI. With the ADX still above 25, this could be viewed as a good signal that a real change is occurring. On the 4hr chart, I’ve boxed out the day for the candle that caused the change and placed some entry targets for a possible retrace to enter. Again, as I noted at the end of the last article, the Wilder strategy would call for the sell to be placed at or below the extreme of the day of the change. However, this does open up the trade to more risk. By tracking the day and subsequent action on the 4 hr chart, it’s possible to reduce the risk by placing a stop order in the 25-75% range with a stop just above the high of the day. In this case, it would have worked however, there are cases which I’ll review next where the trade would have been missed.
BITFINEX:BTCUSD
by mxb1961
Trading the DMI with ADX, TSI and EMA (WHEATUSD) cont.Setting up a trade based on daily signal using 4 hour chart for timing. In this scenario, the daily chart had its ADX below 20 since July 3rd. When trading with DMI/ADX, periods of breakout after the ADX has been below 20 for at least 7-10 periods can provide good results. In this case, the 4 hour chart had dropped below 20 for an extended period too. On July 17th , price moved up which caused the +DI to cross up over the -DI. Based on Wilder's strategy, you would place a buy stop above the high of the day (either the high or a number greater than it). With this strategy, you may consider the stop at a point below the low for the same day. In cases where the daily range is small, then placing orders in this way may not cause too much of a draw down. However, in case where the daily range is large, the risk is much higher though there are cases where it's just the way it works out (recent ngas activity that I'll use in an example in a future article). Alternatively, you could choose to place the stop at something like a 75% retrace of the daily candle when placing the buy stop at the high of the day. Another option is to place your buy order as a limit order somewhere in the 25-75% pullback of the daily range that caused the DMI to swap . On the 4hr chart, marks the day that daily DMI swapped dominance while shows the 25/50/75% breakdown of this price range. While this strategy can reduce the risk of having a larger draw down, it also introduces the risk of missing a trade. I'll review more examples of both of these scenarios in next article.
OANDA:WHEATUSD
by mxb1961
Trading the DMI with ADX, TSI and EMA (WHEATUSD)In my first article, I provided a summary of the tools I’m using plus links to some good material that gives more in-depth details of each. As I go through each concept, I’ll refer to the 3 time frames that I will use in determining a trade. • Weekly: to get the overall bias of the market • Daily: to identify a day to take a trade or to setup a trade • 4 hour: to identify the timing or refine the timing of the trade My goal is to trade a small set of markets across various types which will include E-Mini contracts of Wheat and Corn and E-Micro contracts of Euro, Aussie$, and Gold. I’ve tried to trade crude oil (wti) options with mixed success but won’t actually outline trades but use it in the examples. For the E-Mini’s, I’ll limit my initial entry to 1 contract while the for the E-Micro’s (except Gold), I’ll up limit to 2 contracts. My main goal now is to make more money than I lose to remain in market so that I can continue my education in trading. In this article, I’ll review one of the primary aspects of the DMI as outlined by Wilder and that is the equilibrium point of a market. In his book, on page 45, he states that “Good directional movement is not simply straight up or straight down movement. It is also good up and down movement in excess of the equilibrium point. This, in effect, is what the ADX measures. The equilibrium point is reached when the +DI equals -DI.” More detail can be found in his book and various online articles. In the example of WHEATUSD (I trade e-mini wheat but use WHEATUSD for analysis as I can get near real-time data feed on TV without additional cost), I’ve noted 3 times since April of this year that the market has been at an equilibrium point on the daily chart (A, B, and C picked to mark the spot but not to imply any type of wave stuff). In the first 2 cases, the ADX was above 20 while in the 3rd, the ADX was below 20 at the time of the cross. General speaking, when the ADX is declining and is at 25, it is best to be cautious when the DI’s cross. However, when the ADX drops below 20, it’s best not to trade but to wait for some type of pattern to evolve and trade the breakout. I’ll go through examples of this in future articles. For now, I’ll focus on the 3 times where the market reached equilibrium. In his book. Wilder notes that the day this happens, it is an important date to note (on the daily chart but translates into the period of chart you’re using) as it can prove to be significant in the future too. On page 47 of his book, he reviews a key concept in his systems called the Extreme Point Rule and this is either the high or low made on the day. Depending on if you’re long, you would use the low as the stop and if you were short, you’d use the high as the stop. If not in the market, you could use this point to enter the market by placing a ‘stop’ order at this point. In reviewing these three lines, from a hindsight perspective, it’s obvious now that the markets moved in the direction you wanted but in case ‘B’ only after a considerable drawdown. And, in ‘A’ and ‘B’, potentially the same depending on your appetite for drawdowns. There are cases where the market does continue quickly in the direction of the cross but there are also times that it doesn’t immediately. This is the area I’m studying now trying to discover what conditions lead to one vs. the other. Looking at these three cases, another strategy to think about is that of placing the order at a 25-50% pullback level into the candle that caused the market equilibrium with a stop just below/above the extreme of the same day. In my next article, I’ll focus in on the markets noted above and review the daily charts YTD to see how this strategy would have played out.
OANDA:WHEATUSD
by mxb1961
1
Trading the DMI with ADX, TIS and EMAI’m not a successful trader. I was fortunate (?) to have a father introduce me to trading futures when I was ~12 in the early/mid 70’s (he created a study guide and sat me and my 2 older sisters down at the kitchen table to review it weekly). I was ‘successful’ in the mid/late 80’s but that too went away as did the desire, time and money to continue. 4 years ago I decided to pick it up again but to-date, have not met with success. Maybe my story is typical or atypical, you can decide for yourself. As you can tell from my past posts, I’ve tried/experimented with a lot of different strategies and ideas. As of today (this week as I write), I’ve decided to commit myself to a simple strategy of using the DMI with ADX, TSI, and a trilogy of EMA’s (that is an accumulate of many different things I've learned in the past 4 years). The two books (trading related) that I focus on are listed here: Welles Wilder Book Elder’s Book Details runs amuck on the web regarding the DMI and ADX but these (especially the first link on trading breakouts) I’ve found to be more beneficial. Various links for ADX: Trading Breakouts (you can download the pdf from this site too) ADX Breakouts What is my current configuration : EMA on price at 9/13/26 period TSI: 25/13/7 (the 25 & 13 are default on TV but I use the 7 on trigger DMI/ADX: 14/14 these are defaults as specified by Wilder though you ‘ll see experiments on the web with a lot of different setups. Personally, I try to use the default as Wilder has laid out and not try to optimize them. I use the same configurations on all time frames that I track (weekly, daily, and 4 hour) As you review the slides on the breakout strategy from above, it walks through a scenario of using a 20 period EMA in conjunction with DMI/ADX. I’ve chosen to use the 13 and 26 as a boundary to achieve the same concept. On pg. 48 of his book, Wilder notes: “I know that for many, the Directional Movement concept and its implications have not been easy to comprehend; however, those who pursue it will be rewarded for their effort.” No matter how many times I’ve dropped using the ADX, I’ve always held on to this statement and have come back to it to determine what I’ve missing or haven’t gotten. As I said, I’m not a successful trader today, but my goal is to work to become one. In the opening to his book, Elder notes: “You can be free. You can live and work anywhere in the world. You can be independent from routine and not answer to anybody. This is the life of a successful trader”. Then, in the next 250 pages, dispels myths and such in addition to working through all sorts of tools to achieve this goal. So, why do I feel I can achieve this goal? Well, the 3rd non-trading book I’m reading gives me this hope: Ecclesiastes 9:11 “I have seen something else under the sun: The race is not to the swift or the battle to the strong, nor does food come to the wise or wealth to the brilliant or favor to the learned; but time and chance happen to them all.” The substance of hope and the desire to be ready for your time when it comes. In following posts, I’ll work through examples of how I try to use these indicators (primarily the DMI/ADX).
BITFINEX:BTCUSD
by mxb1961
Ride the trend: IOTX-BTC Uptrend with volume What do I see? I see the uptrend shows power, it includes enough volume and it just broke the local resistance of the previous upswing, aiming for a new higher high. DMI indicators show that ADX has crossed the -DI line, and MACD is going up. It is a good buy above 0.00000566. RSI shows it is bullish and not yet overbought. The EMA’s are crossing. All the ingredients for a good trend upward. The target will be monitored, but I expect the previous swing high is possible. Risk Reward Ratio: Entry level: 0.000000567 - 0.0000058 profit target 1: 0.00000627 Stop Loss: 0.0000055 R/R ratio: profit target 1: 1:1.2 I did not enter yet, I have to be patient for a pullback. When zooming in on a shorter timeframe, we see that RSI is pretty overbought, and I have places my order a bit above +1 ATR. I'm not sure we touch it, and I'm a bit too afraid we won't get to the EMA, because the trend is strong. It is currently at +3 ATR on the 10m timeframe, so my order around +1 ATR should be picked in a short timeframe pullback. It's place around 0.000057. Question: Do you like this trade idea? Please give it a thumbs up! I would love to know if it was useful for you! If you can do so, I am thanking you in advance!
Long
by Tornado_Trading
2
SIACOIN CRYPTO STRATEGYSiacoin is a cryptocurrency that is based on sharing hard drive space. In essence, Siacoin provides new opportunities for everyone to deposit files much like Dropbox can store files (video, images, and documents) on the SIA network. The advantages of Siacoin are that it uses a decentralized user-contributed sharing economy where you can essentially cut the cost of storing files online. So, to purchase storage capacity, you can just use Siacoin tokens, and you can share your unused hard drive space. Cryptocurrency Siacoin is currently the 34th most valuable cryptocurrency with more than $750 million in market capital. Current market Siacoin price is a steal at $0.021 per coin value. Tradingview Indicator DMI includes ADX The ADX indicator doesn’t tell us whether the market is going up or down, it only measures the strength of the trend. To determine whether the trend is up or down we’re going to use the Plus Directional Index (+DI) and the Minus Directional Index (-DI). Step #1: The ADX indicator needs to be higher than 30. The first rule needs the strength trend indicator to show a reading greater than 30. This is the first signal that we’re about to enter into a trending period and, it is a useful information because we don’t want to enter into a market that’s not in a trend condition. The ADX indicator will be raising in a strong bullish trend and the higher it moves the stronger the trend becomes. Step #2: The DI indicator needs to show the +DI line above the –DI line. The directional movement indicator gives us the direction of the Siacoin trend. The blue line is the positive DI, while the yellow line is the negative DI. When the +DI line is above the –DI line that’s a sign of a bullish trend. When the +DI line holds above the –DI and if they are also really spread apart, it signals the presence of a strong bullish trend. So, the reading of the DI indicator also matters, because the higher the +DI line is, the stronger the trend will be. Basically, the strength of the trend is checked twice, first with the ADX indicator and then secondly, with the DMI indicator. Step #3: How to Buy Siacoin: Buy at the opening of the next candle once the two trading conditions are met. A buy stop is placed at the opening of the next candle after the first two conditions are satisfied. Most often when the ADX indicator shows a reading above the 30 level, the directional index will already show a positive trend, so we need to get ready to buy Siacoin straightaway. Step #4: Place protective Stop Loss below the most recent swing low The protective stop loss should be placed below the most recent swing low point. If you’re having problems identifying swing market low points simply check when the ADX indicator bottomed. Usually, the ADX indicator offers a much clearer view of the market swing points. Step #5: Take Profit when the +DI line crosses below the –DI line When the DMI indicator crosses in the opposite direction, we know the trend is turning bearish and we want to take profits on our Siacoin trade. The DMI indicator is a great tool to be used for profitable trading because it provides you with fantastic exit points. I offered 3 different exit points. 1st 1.5 to 1 risk ratio, 2nd 10 candle new low, 3rd +D1 cross below -D1
BITTREX:SCUSDLong
by Tradingstrategyguides
1
Reference Chart for 3 Apex variants, Bolli's, DMI, and VPVR This chart shows 3 variant apex points. HOW TO USE THIS CHART: A. Triangles 1, 2, and 3 can be used to identify potential support and resistance levels. B. Bolli's serve as good reference point to plot feasibility of intra, day or swing targets, up or down, within 1d ATR. Is your target within these ranges? Confirm logic before you 100x from price at the edge of upper or lower bands. C. Volume Profile Visible Range on far right to show price where majority of market is trading, and short or long interest at each level. Note VPVR will only show volume of positions on visible candles . D.Use DMI to judge strength of up or downward momentum based on -Di or Di . Di (- or +) above value of 25 is considered trending. E. ADX is blue line within DMI, and can be used to confirm trend strength identified with Di. Note: ADX measures the strength of the trend and tends to go down before reversal. It measures the strength of the CURRENT trend [i.e. ADX at 50 can confirm strength of down or up move. Invest in yourself, do your homework. www.tradingview.com(DMI) Don't be fooled in to thinking that money only flows if you can hit the tops or the bottoms. Trade the range and secure profit on every run up or down. THE MARKET WILL NEVER RUN OUT OF ENTRIES. Appreciate the risk.
BITFINEX:BTCUSD
by iSovereign
2
Qwark vs BTC (mid&long term opportunity invesment 569% profits)I would like to share a quick analysis with you about Qwark (QWARK) against Bitcoin 2.29% ( BTC 2.29% ): We will be looking here mainly at the daily chart . Here is what you can notice at first glance from the chart: We can clearly see after QWARK broke out the falling wedge and reached ATL at price 0.00000845 started to pull back to our buy zone which is the green area . - Indicators: MACD , STOCH , ADX & DMI MACD : showing negative value which was caused by recent selling off after BTC correction .. eventually with any move it will support the bullish run . STOCH : is at the over sold Area .. with more volume this should back to higher values .. ADX & DMI : ADX showing strong move , +DMI showing strong buying inside the consolidation zone .. *** Instructions Buy-in: 0.00002100– 0.00002510 Stop-loss: 0.00001360 Targets : 1- 0.00003500 2- 0.00006016 3- 0.00007613 4- 0.00009210 5- 0.00011100 6- 0.00014380 (OLD ATH) AKA "All Time High" FINAL NOTE : - This coin for mid and long Term investment specially with current Team project of issuing Crypto Credit Cards . - Use the targets as reference points to sell when you want to take profits. Not all targets are meant to be reached. 100-300% is more than enough profit, and, consider starting to selling small amounts of your coins as soon as you are 30-50% above your own buy-in price. Just some quick suggestions. - Qwark reached previous ATH at 17th of August 2017 .
QLong
by sac1987
BCH might turn bullishHere we have 4h-BCH (Keltner 1.618, high ; Coppock; RSI; DMI). Based on: - Coppock is in + more and more - RSI signals we are not overbought - DI+ is over DI- at DMI - and also onbalancevolume has crossedover its emas (not visible on this chart) I think that: BCH might be supersoon ready for a ride back to 3000ish or more, probably cannot hold up there, but a pump is somewhat likely in my mind. My tactics: buy in 2500-2600 zone, stop sell 2300 sharp, exit 2900ish,3300ish. (Unless Coppock/RSI/OBV indicate(s) otherwise.) This is NOT a trading advise, just a guess of a non-pro. Always use stops, calculate risk! Criticism/comments welcome!
BITSTAMP:BCHUSDLong
by bricoleurs
2
LTC 2504h Coppock starts to be for more and more time in the + range, and also based on other basic indicators (short term RSI, DMI and OBV, see on the chart), I think, if LTC is able to break 250 in the upcoming hours/days and OBV remains cool, than LTC might be supeready for a good ride. I plan to buy in above ~250, stop sell ~220, and if OBV is good than exit 1/2 around ATH, 1/2 somewhat later (I like this coin, tech is pretty cool, and superfast -- i used it and experienced it.) This is NOT a trading advice, just a biased, personal opinion, trading-tactics-sharing: calculate risk (cryptos are superrisky), use reasonable stops (always!), check background technology, avoid FOMO and have fun!
BITSTAMP:LTCUSDLong
by bricoleurs
Next 24 hours crucial for BTC. The selloff from $5000 seems to have stabilized, falling back to the previous support above $4500. We seem to have slowed the rate of decline, with MACD approaching neutral on the 1hr chart. DMI is of concern as the blue +DI and orange -DI are reversed, which indicates strong bearish pressure. If the red ADX line moves into the space between it will indicate a short entry point. I will be watching whether price activity stays within the downward diverging channel, and whether price support holds above the $4500 level. I suggest setting a stop loss under the support or moving your BTC to alts until we see a breakout before September 5.
COINBASE:BTCUSD
by madgod
Weakness in OMG/BTC for NowOnly a partial rise in the third peak shows bullish weakness as price failed to reach resistance. An arguable triple top but more bearish with the rise failure. D-M-I shows sideways ranging momentum only as +DM -DM and ADX are all below 20. Potential bullish cross in SRSI but I think D-M-I will prevail and SRSI will bounce along the 30 for some time. The Kumo span A and the fib align nicely, meaning good support at that level. Would wait for D-M-I to break 20-25 for a long entry as long as supported by SRSI breaching 30 and a positive MACD slope.
O
by titaniumdavid