Get started

Directional Movement Index (DMI)

USDJPY Bearish DivergencePrice and RSI formed a bearish divergence at the strong resistance level. It's a reversal signal and we have short opportunity. Entry level for short trades should be below MA20 if the market breaks this line. Stop orders must be placed above 112.00 level and take-profit orders near 110.500 and 110.00 support levels. MACD histogram is going to confirm down movement. RSI confirms price reversal from the resistance level. DMI allows open short trades and if ADX line falls below 20, we'll have additional confirmation for down movement. Don't forget to follow your money management rules.
Short
by DLavrov
1
EURUSD Entry LevelsPrice tried to pass throught the kumo but a bearish candle shows us a possible price reversal. Any way this up movement gives us a possible entry level for long trades, if the market decides to move higher. DMI confirms trend market conditions and the up movement. Entry level for long trades should be above 1.12250 with stop below the kumo. Take-profit orders should be placed near the resistance level. But what if the market moves lower? RSI confirms price reversal from the kumo and we can think about selling. If price falls below 1.11650, we'll have short opportunity. Stop orders for short trades must be above the kumo and profit target should be at 1.11200 level. If the market breaks this level, we'll see down movement to 1.10000 level. P.S. If you think this information can be useful, please, like it and share. Also I will be glad to read your comments )
by DLavrov
1
Ethereum Entry Levels for BuyLet's think about possible entry levels using MA indicators and support levels. We can see how the market moves to the possible reversal levels. DMI indicator shows trend market conditions but ADX line falls and it tells us that we should not expect strong up movement within several days. MACD also confirms down movement. RSI falls to the oversold zone and we will be able to get a strong reversal signal. So, we have a good correction movement and out target should be to wait for price reversal in the direction of the main up trend. Buying zones can be near 260.00 level, MA50 line, 200.00 level and MA100 as a support line too. The main thing is - price must bounce from one of these levels and MACD histogram and RSI will have to confirm price reversal. Only after that we'll have to buy based on trading signals from the daily and hourly charts. P.S. If you think this information can be useful, please, like it and share. Also I will be glad to read your comments )
BITFINEX:ETHUSD
by DLavrov
40
BCNBTC Trading IdeaLet's look at the daily chart of BCNBTC and try to understand how we should trade this pair. We have to note that the market is in an up trend but presently we can see a correction wave. It's confirmed by price movement between the resistance and the support levels and DMI indicator. It will be correctly to wait for a new impulse wave and only after that join the up trend. We should open long trades only if price breaks the 1st resistance level and ADX line rises above 20 level. MACD will have to support this up movement. Profit target for long trades must be at the 2nd resistance level. If price breaks the support level and MA50, we'll see down movement to MA100 (yellow line). If the market bounces from MA100, it will be a new long opportunity with profit targets at the resistance levels. P.S. If you think this information can be useful, please, like it and share. Also I will be glad to read your comments )
B
by DLavrov
14
ETHBTC Trading IdeaThe market reached the whole number level 0.15000 and we could see a price reversal. A bearish divergence confirmed down movement to MA20 as a possible reversal level. But price broke this line and moved lower. Now we have a situation where price is below MA20 and there is a free space for falling. MACD confirms down movement and DMI also shows that we should not expect price reversal. We have to find possible entry levels for long trades. We'll be able to buy when correction movement is over and we see price reversal from target levels. Such levels are - 0.10000, MA50 and MA100, 0.06000 level. When price reaches one of these levels and we get a reversal signal, we'll have a long opportunity. Indicator will have to confirm that the market is going to move upward. Only after that we'll be able to open long trades with profit target at the resistance level. P.S. If you think this information can be useful, please, like it and share. Also I will be glad to read your comments )
by DLavrov
17
Ethereum Classic Trading IdeaThe market is going to bounce from Kijun and the uptrend line. We can have a possible buy signal and we must think about entry level. The resistance level 22.00 can be a place where the market will be stopped and reversed again. That's why buying not far from the resistance level it's not a good idea. So it will be logical to open long trades if price breaks this resistance level. We'll have possible price movement to 25.00 30.00 levels. For confirmation the breakout we should use DMI indicator. When the market moves above the resistance level, ADX line will have to rise also and support this up movement. Also high volume will be an additional confirmation that the breakout is true. P.S. If you think this information can be useful, please, like it and share. Also I will be glad to read your comments )
BITFINEX:ETCUSDLong
by DLavrov
2
Interesting ADX pattern to watch forDuring the past several weeks, I've noticed something evolve in crude oil on the daily ADX called a 'change in dominance'. This is where the ADX is above 20 and the +/-DMI swap dominance resulting is a 'V' type ending to a trend. The setup for the pattern was an ADX reading below 20 resulting in a consolidation in price. Then, price broke out and ADX began to move up. Then, without much of a pullback, price reversed and the -DMI crossed up over the +DMI causing the change in dominance. During this time, price was pulling back but the +DMI was still up so waiting for the two DMI's to cross would have resulted in missed trade. Looking out across other markets now, I see a similar setup in Soybean Oil (which I'm trading on short side). If this is a similar pattern, then two of the three steps have completed and this week should see price move down. DXY is another market that could be setting up the same pattern. It will be interesting this week to see how this plays out. Should it work, it could be an interesting pattern to tuck away for future reference British Pound may be another candidate for this pattern.
TVC:USOIL
by mxb1961
3
Copper Expected to Strengthen - Long TermCopper Weekly – At the beginning of 2011, Copper made a directional change and has fallen more than 50% to date. However, with the copper demand growing, the commodity could be ready to make its next directional change in the coming months. China, the largest consumer of copper, is seeing its economy stabilising once again after suffering during the first half of the year. This had led to copper prices increasing over the last month and demand is expected to increase globally over the next four years. However, there is expected to be a large shortage for this growing demand and Citi Bank has predicted that this will lead to a 40% increase in copper prices. On the technical side, we would be looking for price to break out of the triangle, followed by a break of the $2.30 level. Copper prices along with other metals have had a weak final quarter for the past five years but this streak is highly expected to break this quarter. This would most likely mean a break of the triangle which would be a strong sign of a long term price increase. Alternatively, if price broke below $2, a strong decline would be expected.
OANDA:XCUUSDLong
by priyesh
Weekly Chart Showing Strength, $ECAEncana Corp has recently broken a resistance line and a year long downtrend line this year. After being up the past few months, it is continuing to look bullish. It has just had a two month consolidation period and is ready for the next leg up. The price has moved above the 20MA (which it respected during the downtrend) and the 50MA. Additionally, the Directional Movement Index is also showing a possible strong uptrend with it nearing a pass above 25, and the Relative Strength Index is about to move above 70. Next resistance is around 13.30 to 13.50 which is 10% above the current price.
ELong
by juniortrader
Will Gold resume its Bull run?The decade of bull run from ~$260 in 2001 to $1920 in 2011 (6X) on back of safe haven buying and an investment asset class ended with revival in major global indices and on track economies. The 5 years of slow and steady pain from 2011 to 2016 where gold lost 45% of its glittering from its peak might come to an end. We might witness the resumption in the bullish trend on the back of technical setups. The rationale are: * Morning Star - bullish reversal candlestick pattern * Falling channel support * 38.20% Fibonacci retracement of $260 to $1920 * 2/1 Gann fan line * 141% Fibonacci time cycle of 2001-2011 ends at January 2016 * -DI sloping southwards suggesting bears are tiring The above view would hold till gold doesn't breach $1000 and expect the move towards $1450-1600.
COMEX:GC1!Long
by bbrijesh