Here we have a Directional Movement Index crossover at POINT A. See how price reacts at POINT B leaving the price at point A (where the indicator crossed) the highest point in the pattern. Instead of continuing to rally, prices stall. POINT A is the SWING HIGH
PATTERN.
Here we see at POINT A there is the crossover of two moving averages. Notice that at POINT B, price has immediately retraced. This reaction at POINT B makes POINT A the SWING HIGH price pattern.
CALCULATING +DM and -DM
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Up Move = today's high – yesterday's high
Down Move = yesterday's low – today's low
if Up Move > Down Move and Up Move > 0,
then +DM = Up Move, else +DM = 0
if Down Move > Up Move and Down Move > 0,
then −DM = Down Move, else −DM = 0
CALCULATING +DI and -DI
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+DI = 100 times the...
In the candlestick chart at the top you'll see daily interval prices of IBM corporation with a layover of the 12 and 26 period exponential moving averages. In the lower portion of the chart you'll see the MACD indicator, the slower 'trigger line' or 9 period Simple moving average, and the zero line around which the first two oscillate.
The typical default...
