| |
|
Last Poster |
Posts |
Pages |
Last Post |
| |
|
|
|
|
|
|
| Author |
Message |
     margur
Member
Username: margur
Post Number: 1
Registered: 05-2005Rating: N/A
Votes: 0
|
| | Monday, August 08, 2005 - 03:45 pm: |  
|
I normally trade short term cfd's,using +DI/-DI as a trigger and until recently things were going quite well. But in this ranging market, I get stopped out far too often.(Don't we all, I hear you say). Has anyone any suggestions that can help, regarding indicators ?
|
davkell
Member
Username: davkell
Post Number: 182
Registered: 07-2004Rating: N/A
Votes: 0
|
| | Monday, August 08, 2005 - 11:37 pm: |
|
Depends on how you are currently using +DI & -DI! Let us know how you're trading with it and we should be able to suggest something.
Cheers.
"Trade Your Way To Financial Freedom" - Van K Tharp
|
margur
Member
Username: margur
Post Number: 2
Registered: 05-2005Rating: N/A
Votes: 0
|
| | Tuesday, August 09, 2005 - 11:27 am: |
|
Davkell,thanks for your answer. When +DI(9) crosses up through -DI(9), I go long and visa versa for 'short'.
Is there another way of using this indicator ? This just goes to show how little I know !
|
davkell
Member
Username: davkell
Post Number: 183
Registered: 07-2004Rating: N/A
Votes: 0
|
| | Tuesday, August 09, 2005 - 03:53 pm: |
|
I'm assuming you are talking about Daily Screens. One suggestion would be to ensure the Weekly trend is up for Long trades or the Weekly trend is down for short trades. You might also want to incorporate the ADX into your system, eg. ensure it is rising when you take the signal for Long or Short trades, or that it is greater than 20 and rising (you determine the value based on past testing!)
Just a couple of suggestions for you to consider.
Below is a copy of a reply I got from Dawn Bolton-Smith and published in the current issue of Your Trading Edge magazine. It is in reply to similar questions regarding the DM system.
Dawn: "I believe Directional Movement is a wonderful backup to any trading system. It is worth fully understanding how it works and understanding all facets of the ADX – a powerful indicator that tells you when a market is becoming extremely high-risk. Different markets have different levels but generally I watch the +50 area carefully. Ideally, the ADX is between the +DI and -DI when the market is trending, but when it goes above both DIs and then turns down, Wilder says it is time to take some profits. Usually the Parabolic Stop will take you out of the trade at a very satisfactory level. When the ADX is below both DIs it is best not to use a trend-following system. A market can still be trending with the ADX flattening but still rising.
Sometimes it is hard to explain, but generally speaking this system will make you money and capture the really big trends for you. The harmonic 5/15/30 EMAs combine well with Directional Movement. After the ADX has been falling and then flattens and goes sideways around the +15 level, the DIs cross over and then the ADX starts to rise about 3 to 5 days later. It is considered that +25 is a trending market and once above +30 a strong trend is getting under way. However, if you identify a proper bottom, getting in at +15 levels captures a bigger part of the move. You will find doing a point and figure chart on whatever you are trading will also confirm the direction.
The Technical Traders Guide to Computer Analysis of the Futures Market, by Charles Le Beau and David W. Lucas, tells you all you need to know about Directional Movement."
Hope that helps. Cheers.
"Trade Your Way To Financial Freedom" - Van K Tharp
|
margur
Member
Username: margur
Post Number: 3
Registered: 05-2005Rating: N/A
Votes: 0
|
| | Tuesday, August 09, 2005 - 04:34 pm: |
|
Thank you very much for your quick response. I shall definitely have a look.
|
|
Threads by Last Post Time: First
Previous
255
256
257
258
259
260
261
262
263
264
Next
Last
|
