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DMI

AES Corporation - Short term view with strong supportSo first of all both price and indicators are confirming the downtrend. Today NYSE:AES opened with a gap succeeding yesterday's equilibrium in price with doji candles. The price is still in the middle of the regression line and in the next few days the price don't seems to be close to upper 2 SD. In the print above the yellow line shows the support at $11.43. The image's time horizon starts at the end of 2006. Furthermore looking at short ratio available online the value is about 2,7 from mid October as well as more than 22M short interest
NYSE:AESShort
by AFCapital21
Easyjet ready to fly?Easyjet records better financial statements, looking at the report is possible to read that LSE:EZJ flew about 5% increase in seats when compared with last year. The revenue increased by 14% this mainly because of the increase of 8% in capacity. Looking over the financial indicator it's noticeable an increase in revenue and the difference compared to 13 week moving average. The price breakout for the second time above the top of ascending triangle following for a cross over the 200ema. The yellow resistance is the strongest one that still needs to be broken. ADX is already above DMI- and being at 19,49 can show some strength confirming the DMI+. EFI barely dropped below zero when the price failed to cross the EMA changing direction above zero rapidly.
LSE:EZJLong
by AFCapital21
Example of Conditions for Starting Trading Hello, traders. If you "Follow", you can always get new information quickly. Please also click "Boost". Have a nice day today. ------------------------------------- I will publish in advance due to an external schedule tomorrow. Accordingly, I will take time to provide additional explanations on the ideas published today. ---------------------------------------- I will talk about the basis for indicating the direction of progress shown in the chart above. In order to differentiate from other people's analyses, I am trying to explain the basis for indicating the support and resistance points or sections on the chart. I think that if you understand why those points and sections were set, you will eventually be able to understand them without having to read the explanation all the way through. For this, more support and resistance points are needed. This is because we can select the volatility period by additionally drawing the trend line. However, since all of these processes are displayed on the chart, there are many complaints that the chart is messy and confusing, so we are trying to reduce them as much as possible. Therefore, there are cases where the chart is displayed in two versions. The chart below is a chart that shows many support and resistance points and draws a trend line to select the volatility period. Therefore, since the support and resistance points may be displayed differently, it is recommended that you refer to the points or sections that I have written. - The conditions for starting a transaction are simpler than they look. However, when these conditions are met, the support and resistance points drawn on the 1M, 1W, and 1D charts must be displayed. Therefore, even if the conditions for starting a transaction are met, if the support and resistance points are not displayed at the corresponding price, you cannot start a transaction. Please read this carefully and thank you. - (It would be good to see this as an example of how to find the conditions that fit you and how to utilize them.) Conditions for starting a transaction are 1. Buying time conditions - When the StochRSI indicator rises in the oversold range and maintains the state of StochRSI > StochRSI EMA - When the BW indicator forms a horizontal line at the lowest point (0) - When the OBV indicator rises below the 0 point - When the DMI indicator rises below the 0 point 2. Selling time conditions - When the StochRSI indicator falls in the overbought range and maintains the state of StochRSI < StochRSI EMA - When the BW indicator forms a horizontal line at the highest point (100) - When the OBV indicator falls above the 0 point - When the DMI indicator falls above the 0 point When the above conditions are met, check whether there is support at the support and resistance points drawn near the price. Confirmation is used to proceed with the transaction. The current price position is 60672.0-61099.25. Therefore, you can proceed with the transaction depending on whether there is support in this section. Since it is currently falling below 60672.0, there is nothing you can do in spot trading other than cutting losses. In futures trading, you can enter with a sell (SHORT) position. - It is rare for all the conditions for starting a transaction mentioned above to be met. Therefore, it is recommended to basically check whether the BW indicator forms a horizontal line at the lowest point (0) or highest point (100), and then proceed with the transaction by checking the movement of the StochRSI indicator. Also, it is recommended to select a split sell section to make a profit by calculating the fluctuation range while checking the strength of the rise or fall with OBV and DMI. - In summary of the above, Since the StochRSI indicator has not yet risen from the oversold zone and StochRSI < StochRSI EMA, it is recommended to check whether a reversal is occurring. Also, you should check whether the BW indicator has fallen to the lowest point (0) and formed a horizontal line. If the OBV and DMI indicators rise below the 0 point without meeting these conditions, you should proceed with an aggressive purchase (a transaction that requires a quick response similar to scalping or day trading). If you do not proceed with an aggressive purchase, you should wait. - It is not a good idea to enter a current sell (SHORT) position in futures trading. However, if you proceed with an aggressive transaction (scalping or day trading), you can start trading. The reason why it is not a good condition for trading is because the price is located in the 1. purchase timing condition section among the conditions for starting a transaction mentioned above. Therefore, the profit is small or you may even suffer a loss. - If you are not currently trading, I think the section where you should trade is when it rises around 61K. Before that, it is highly likely that you will not be able to purchase because it seems like it will fall further. I think this point, or the section where you actually trade, is the psychological volume profile section. This psychological volume profile section is the section where psychology applies that you must trade even now. Since this point is ultimately a low or high point, it is a section where you are likely to incur losses if you purchase. The 61K section that I mentioned earlier is a section where it is highly likely to be a low point, so it is a section where you are likely to incur losses if you cut your loss or enter a sell (SHORT) position. - If it shows resistance near 60672.0, there is a possibility that a sharp decline will occur momentarily and touch 59K and then rise. This phenomenon can be a fake or a sweep movement, so you need to be careful. In order to avoid losses from this phenomenon, auxiliary indicators are necessary. Since auxiliary indicators are lagging, they are unlikely to show large movements in sudden price fluctuations. - What I am talking about is not a method of chart analysis, but an example of how to set a standard for trading. Therefore, I hope you do not misunderstand the above as about chart analysis. Since chart analysis and trading are different, what you see on the chart is also different. In order to complement this difference, what is needed is the support and resistance points drawn on the 1M, 1W, and 1D charts. Since charts without support and resistance points are likely to be for chart analysis, there is no need to try to find a trading point on these charts. - Have a good time. Thank you. -------------------------------------------------- - ​​Big picture It is expected that the real uptrend will start after rising above 29K. The section expected to be touched in the next bull market is 81K-95K. #BTCUSD 12M 1st: 44234.54 2nd: 61383.23 3rd: 89126.41 101875.70-106275.10 (overshooting) 4th: 134018.28 151166.97-157451.83 (overshooting) 5th: 178910.15 These are points where resistance is likely to be encountered in the future. We need to see if we can break through these points. We need to see the movement when we touch this section because I think we can create a new trend in the overshooting section. #BTCUSD 1M If the major uptrend continues until 2025, it is expected to start by creating a pull back pattern after rising to around 57014.33. 1st: 43833.05 2nd: 32992.55 -----------------
Education
by readCrypto
Next Volatility Period: Around October 5th - 10th Hello, traders. If you "Follow", you can always get new information quickly. Please click "Boost" as well. Have a nice day today. ------------------------------------- The BW indicator is currently leveling off near the midpoint (50). Therefore, I think it is not suitable to trade around 60672.0-61099.25. If you want to trade around 60672.0-61099.25 depending on the support, you will need a short and quick response. - When the BW indicator is leveling off at the lowest point (0) or highest point (100), a BW line is created on the price chart. I think you can trade more stably by using this BW line as a support and resistance point. Therefore, you can wait until the next BW line is created or check whether it is supported when touching the previous BW line (61759.99) and then trade. At this time, the StochRSI indicator is also worth looking at. Since the StochRSI indicator creates waves in any case, I think it is an indicator worth referring to when trading. Therefore, - If the StochRSI indicator rises in the oversold zone and maintains the state of StochRSI > StochRSI EMA, it is a time to buy, - If the StochRSI indicator falls in the overbought zone and maintains the state of StochRSI < StochRSI EMA, it is a time to sell. However, you should be aware that since you cannot know the size of the fluctuation range, you may see little profit or even a loss. To prevent this, you need the support and resistance points drawn on the 1M, 1W, and 1D charts. Based on these support and resistance points, you should proceed with the transaction depending on whether the movement mentioned above is supported or not. Then, since you can calculate the approximate fluctuation range, it will be a reference for deciding whether to proceed with the transaction. Accordingly, if you display the rise and fall range based on the 60672.0-61099.25 section, it will be as shown in the chart above. - When a new candle is created, - Whether it will definitely enter the oversold section - Whether there is a change in the slope of the StochRSI indicator - Whether the StochRSI EMA falls below the midpoint (50) You should check whether the above is satisfied and create a response strategy according to the next movement. - Have a good time. Thank you. -------------------------------------------------- - ​​Big picture It is expected that the full-scale uptrend will start when it rises above 29K. The next expected range to touch is 81K-95K. #BTCUSD 12M 1st: 44234.54 2nd: 61383.23 3rd: 89126.41 101875.70-106275.10 (overshooting) 4th: 134018.28 151166.97-157451.83 (overshooting) 5th: 178910.15 These are points that are likely to receive resistance in the future. We need to check if these points can be broken upward. We need to check the movement when this range is touched because it is thought that a new trend can be created in the overshooting range. #BTCUSD 1M If the major uptrend continues until 2025, it is expected to start forming a pull back pattern after rising to around 57014.33. 1st: 43833.05 2nd: 32992.55 -----------------
by readCrypto
The key is whether it can be supported at 64748.70 Hello, traders. If you "Follow", you can always get new information quickly. Please also click "Boost". Have a nice day today. ------------------------------------- There is a content about the volatility period of the StochRSI indicator in the previous idea, so please refer to it. (BTCUSDT 1D chart) The HA-High indicator on the 1D chart is expected to be generated at the 64748.70 point. Accordingly, the key is whether it can rise above 64748.70 and be supported. If not, as I mentioned in the previous idea, we need to check the support in the above section - 63118.62.64000.0 - 60672.0-61099.25 . Since the M-Signal of the 1D chart is passing around 63118.62.64000.0, it is an important support and resistance section, and since the M-Signal of the 1W chart is passing around 60672.0-61099.25, it is an important support and resistance section. However, if the decline continues, the M-Signal of the 1W chart is expected to rise around 61759.99, so this area is also an important support and resistance section. - (1D chart) Since the HA-High indicator of the 1D chart has been touched, if it fails to rise above the HA-High indicator, it is likely to touch the HA-Low indicator. Therefore, as the price falls, we need to check where the HA-Low indicator is generated. If it is not generated, it is likely to touch around the 56204.13 point. However, as I mentioned earlier, there is an important section, so it is not expected to fall easily. - The volatility period is expected to be around October 5-10 (up to October 4-11). Therefore, the point of interest is whether it will pass the 66676.87-68249.88 section or the 56150.01-56950.56 section after this volatility period. If not, and it moves sideways, you need to check if the M-Signal of the 1D chart > M-Signal of the 1W chart can be maintained. If the M-Signal of the 1D chart < M-Signal of the 1W chart is maintained, there is a possibility that it will converge near the M-Signal of the 1M chart. I will explain this in detail again when there is movement. - (1M chart) This is the day when a new moon candle is created. Therefore, I will explain this after a new candle is created. - Have a good time. Thank you. -------------------------------------------------- - ​​Big picture It is expected that a full-scale uptrend will start when it rises above 29K. The next expected range to touch is 81K-95K. #BTCUSD 12M 1st: 44234.54 2nd: 61383.23 3rd: 89126.41 101875.70-106275.10 (overshooting) 4th: 134018.28 151166.97-157451.83 (overshooting) 5th: 178910.15 These are points that are likely to receive resistance in the future. We need to check if these points can be broken upward. We need to check the movement when this range is touched because it is thought that a new trend can be created in the overshooting range. #BTCUSD 1M If the major uptrend continues until 2025, it is expected to start forming a pull back pattern after rising to around 57014.33. 1st: 43833.05 2nd: 32992.55 -----------------
by readCrypto
Before the new month beginsHello, traders. If you "Follow", you can always get new information quickly. Please click "Boost" as well. Have a nice day today. ------------------------------------- (BTCUSDT 1M chart) There is now one day left until a new candle is created. The current StochRSI indicator is rising below the midpoint (50). We need to check what the StochRSI indicator will look like when a new candle is created. I have marked three sections as important support and resistance sections on the 1M chart. If it falls below the second section, it is likely to turn into a downtrend, and the strong support section at this time is the third section. - (1W chart) The next volatility period is the week around October 7th. So, September 30th - October 13th. The important sections on the 1W chart are 69648.14, 65920.71, 61099.25, and the M-Signal on the 1M chart. The StochRSI indicator has risen above the midpoint (50). Therefore, it is necessary to check whether it will enter the overbought zone when a new candle is created. Since the BW line is currently formed at 69648.14, it is important to check whether there is support near this point. If it goes up a bit more, there is a possibility that a new BW line will be created, so if a new BW line is created, we need to check whether there is support near it. - (1D chart) Among the volatility periods mentioned in the 1W chart, it is expected that full-blown volatility will likely occur between October 5th and 10th. What is important to watch as this volatility period passes is whether it can fall below 56150.01 or rise above 66676.87-68249.88. - It is currently located near the HA-High indicator on the 1W chart. As I mentioned in the previous idea as an update, the StochRSI EMA indicator has never touched the 100 point. Therefore, there is a very high possibility that the StochRSI indicator will be reset somehow. Therefore, it is an important point to watch how the StochRSI indicator is initialized. Since it is overheated, even if it shows a slight decline, the StochRSI indicator shows a downward trend. In this movement, buying because the price is rising will make your psychological state unstable. Therefore, it is necessary to check whether it can be supported at the lower point of the HA-HIgh indicator box (65441.08) ~ 65920.71. If it falls without support, 1st: 64179.08 2nd: 61099.25 You should check whether it is supported at the 1st and 2nd points above. When the StochRSI indicator falls in the overbought zone, there are cases where it immediately shows a downward trend and cases where it does not. Currently, it seems that volatility is likely to occur when the StochRSI indicator is located near the midpoint (50). At this time, I think it is important to know where it is supported. - If it rises above 65920.71, 1st: 67614.25 2nd: 69648.14 We need to check whether it is supported near the 1st and 2nd above. However, depending on whether the StochRSI indicator is initialized, there is a possibility that the upward trend will continue while creating a new wave, so we need to watch the situation. - Have a good time. Thank you. -------------------------------------------------- - ​​Big picture It is expected that a full-scale upward trend will begin when it rises above 29K. The section expected to be touched in the next bull market is 81K-95K. #BTCUSD 12M 1st: 44234.54 2nd: 61383.23 3rd: 89126.41 101875.70-106275.10 (overshooting) 4th: 134018.28 151166.97-157451.83 (overshooting) 5th: 178910.15 These are points where resistance is likely to occur in the future. We need to check if these points can be broken upward. We need to check the movement when this section is touched because I think a new trend can be created in the overshooting section. #BTCUSD 1M If the major uptrend continues until 2025, it is expected to start forming a pull back pattern after rising to around 57014.33. 1st: 43833.05 2nd: 32992.55 -----------------
by readCrypto
Next Volatility Period: Around October 11Hello, traders. If you "Follow", you can always get new information quickly. Please click "Boost" as well. Have a nice day today. ------------------------------------- It is showing sideways movement around 63118.62-64000.0. Therefore, if it breaks out of this area, - 65920.71-67614.25 when up - 60672.0-61099.25 when down You should check for support around the above area. The StochRSI EMA is almost approaching the 100 point. Accordingly, the possibility of volatility is increasing. As I mentioned in the previous idea, I think we can predict the future trend depending on how the initialization of this StochRSI indicator proceeds. - (BTCUSDT.P 1h chart) The section that the finger is pointing to is the section that fell below the 5EMA of the 1D chart, then touched the HA-Low indicator and rose. When it fell below the 5EMA of the 1D chart this time, we need to check whether it touches the HA-Low indicator and rises. The M-Signal indicator of the 1D and 1W charts is passing through the 60651.2-61149.2 section, so the key is whether it is supported around this area when falling. When rising 1st: 65922.3 2nd: 67612.8-68215.5 You need to check whether there is support near the 1st and 2nd above. - It is not easy to know whether it will rise or fall right now. However, you can predict the next support or resistance section depending on how it breaks through the support and resistance points of the 1M, 1W, and 1D charts drawn on the chart. Therefore, I think it is a good idea to trade with a response strategy for rising and falling from the current position. For this, you need to have your own trading strategy established. ----------------------------------------- (USDT.D 1D chart) USDT dominance is showing a decline in an important section. Therefore, we need to watch whether it can fall after receiving resistance near the M-Signal indicator on the 1W, 1M chart. I think that in order for the coin market to show an upward trend, the USDT dominance must show a downward trend. Therefore, it is expected that we will be able to know whether the coin market can start an upward trend depending on whether the USDT dominance falls below 4.97 and is maintained or shows a downward trend. -------------------------------------- The purpose of adding DMI and OBV is to find out the strength of the trend. The final formula was changed accordingly. Based on the 0 point, - If it rises above 0, it means that the upward force is strong. - If it falls below 0, it means that the downward force is strong. The important thing to note here is when it touches the 2 or -2 point. At this time, you can proceed with a transaction by checking the movement of the BW indicator and StochRSI indicator. The trading time should be conducted depending on whether there is support at the support and resistance points drawn on the chart. It is recommended to use the movement of the indicator only as a basis for judging whether it is supported at the support and resistance points. - Have a good time. Thank you. -------------------------------------------------- - ​​Big picture It is expected that the real uptrend will start when it rises above 29K. The area expected to be touched in the next bull market is 81K-95K. #BTCUSD 12M 1st: 44234.54 2nd: 61383.23 3rd: 89126.41 101875.70-106275.10 (overshooting) 4th: 134018.28 151166.97-157451.83 (overshooting) 5th: 178910.15 These are points where resistance is likely to occur in the future. We need to check if these points can be broken upward. We need to check the movement when this section is touched because I think a new trend can be created in the overshooting section. #BTCUSD 1M If the major uptrend continues until 2025, it is expected to start forming a pull back pattern after rising to around 57014.33. 1st: 43833.05 2nd: 32992.55 -----------------
by readCrypto
3
Bitcoin ready for more Up after Halving ?Bitcoin Daily At time of writing, we have 1 day and 18 hours till the Halving. And what will happen then ? On any ordinary day, I would say we are in the perfect position to move off the bottom of the range we have been in since late Febuary, even though we have only retraced -17%.. In that Time, #BTC PA reached oversold twice and maybe about to do it again on the 4 hour charts. It never reached that on the Daily chart even though it was overbought twice in the same time period. As you can see, we now have the MACD, Signal and RSI below the Zero line and Volume input low. This is SO READY TO PUSH HIGHER but Will it ? PA has been dropping down the fib circle, as it did before and does seem to be finding Support at Range Low. BUT, the DMI ( image ) tells us something else. The ADX shows Range strength, DI - and DI + show Range direction The ADX ( yellow) is rising while we are in a Bearish position and this is backed up by the DI - ( red) still being Higher than the DI + which seems to be ranging Low and not taking any ground above itself. A positive take on this is that DI- is NOT rising, DI + is low and able to Rise. In summery, #Bitcoin is waiting for its moment. There is no weakness here. It is like a coiled Spring, ready to go when the time is right but we do still have the possibility of a further drop, maybe a Flash dip that would be bought up so quick it may surprise you Be ready but we could stay here for a few more weeks. Ot move on Saturday ---->
INDEX:BTCUSD
by Orriginal
A Renko Trading Strategy with Multiple Indicators (update 1)This will serve as an update to the previous discussion specifically to some of the chart settings and the approach. Going into the open on 25-March-2024, I was looking for price to move lower to test the monthly and yearly Camarilla R3. My reasoning was that neither seemed to have been tested yet and that these two together would provide a good level for support. My long term view on crude oil is bullish and I believed this type of action would provide a good entry point. However, this plan did not come through so I stood aside to let the market playout to determine another entry strategy. While watching the market in the charts I had published earlier, I decided to make some adjustments to see if I would have detected the market’s plan sooner providing an entry point. The following are the changes that I’ve made: Changed the timeframe of the Renko chart from 15 minutes to 1 minute. Without paying for a higher subscription in TV, 1 minute is as low of a timeframe as you can go with Renko. This alone changed the dynamics of the chart with a different view on the DMI and Stoch. Changed the slower Stoch from 25,3,3 to 50,3,3 (which is a setting I’ve experimented with in the past. The DMI remained the same as did the levels of importance for the ADX of 35 and 20. Added the BPP (Bull Bear Power) indicator and set it to an interval of 50. I’ve not used this indicator before but was experimenting with some items yesterday and found this. I set the line to a step line and you can see the results here. Added a 2-hour candle chart next to the Renko and will use it in conjunction with the Renko chart to make entry/exit decisions. Removed the manual Linear Regression from the Renko chart and have added them to the 2hr chart. This is a more natural fit and have maintained the default settings. I have added two LR indicators with one at 1 STD and one at 2 STD. Removed the manual drawings of the Camarilla pivots and have added them as indicators to the 2hr chart. Removed the volume profile from the Renko chart and have added it to the 2hr chart with a week timeframe. All markup for volume area, opening range, etc. will be put on the 2hr chart and will be for a weekly view. The Renko chart will remain to work for timings of entry and exits. Considering the 1-minute chart, you can see that there was a buy signal across several of the setups. As noted earlier, the consolidation on the 1 minute/25 tick Renko chart provided a signal that a breakout was coming. The slower Stoch set to 50,3,3 provided some insight into the direction with the break of the %k up over the %d and lastly, the new BBP gave an indication that the down move was a correction and that higher prices could be coming. A long wick and breakout of consolidation would have been a trigger to enter a trade of buying a Call option (see green arrow on Renko). Looking at the 2hr candle chart with the 2 linear regressions (1 and 2 STD respectively), then you can see where the support was formed then then where resistance was hit. The monthly and the weekly R4 provided resistance and now support is at the median of the current LR. Because the break of the weekly R3 was with a force with no test, my plan now is to find an entry long (an August Call) along this line which is also the same proximity of the weekly Pivot and the top of the week’s opening range (where the opening range for the week is defined as the first 5 2hr candles of the week. With a red brick in place on the 1 minute/25 tick chart, a green brick now would be a buying opportunity. I’ve added a consolidation channel across levels of what could be support for any pullback and could see another 25-tick brick in place before the green brick to the upside.
NYMEX:CL1!Education
by mxb1961
Ascending Triangle breakout for GTII GTII appears to be one of the cannabis companies in America holding their market cap relatively intact. There is an ascending triangle pattern on the verge of breaking out, and like clockwork cannabis reform in America is a hot topic to capture voters of all ages. “There’s no excuse for our not being in the forefront for something that is now legal for 97 percent of the American public and, where people have a chance to vote, they vote to change the policies,” Blumenauer said. “I am hopeful that we can see some action following through on the legislation I passed—but, more importantly, on the things that the American people want.”
CSE:GTII
by satoshi123
Navigate the Markets with PressureO DMI Idea Description: Introducing PressureO DMI: the culmination of a 13-year journey through the world of trading, encapsulated in a single, powerful indicator. Crafted to cut through the market's noise, this tool is your ally in decoding the subtle cues that signal shifts in momentum and sentiment. Rooted in Real Trading Experience: PressureO DMI isn't an abstract concept; it's a practical instrument forged in the fires of daily trading. It's a distilled essence of market understanding, offering you a nuanced view of the forces that move the markets. With an emphasis on directional movement, this indicator simplifies complex market conditions into actionable insights. Your Tactical Compass: Trading requires more than just data; it demands context. PressureO DMI provides that context by overlaying directly onto your charts, offering a visual guide to market pressure points. It's designed to enhance your interpretation of market trends, helping you to identify potential entry and exit points with greater confidence. Strategic Clarity: With adjustable settings for length and smoothing, the PressureO DMI adapts to your trading style, allowing you to tune into the market's frequency. Whether you're a day trader seeking agility or a long-term investor requiring broader strokes of insight, this indicator scales to your needs. A Preview to Proficiency: For those curious to experience what a blend of data-driven analysis and seasoned intuition feels like, the PressureO DMI offers a free version. It’s a taste of strategic clarity, a preview of what it means to have a tactical edge in your trading arsenal. An Open Invitation: Try the PressureO DMI today and step into a realm where data meets intuition. You're not just applying an indicator; you're adopting a piece of market wisdom, a slice of a trader's life-long quest for consistent performance.
NASDAQ:TSLA
by LeoinP
2
DIRECTIONAL MOVEMENT INDEX (DMI) EXPLAINED The Directional Movement Index (DMI) is a technical indicator used in financial markets to analyze the strength and direction of price movements. It was developed by J. Welles Wilder and is a component of the larger Average Directional Index (ADX) system. The DMI consists of two lines: the Positive Directional Indicator (+DI) and the Negative Directional Indicator (-DI). These lines are used to determine the strength of upward and downward price movements, respectively, and to generate trading signals. Here's how the DMI works: Calculation of True Range (TR): True Range measures the volatility of a financial instrument over a given period. It is calculated as the greatest of the following three values: The difference between the current high and low prices. The absolute value of the difference between the current high and the previous close. The absolute value of the difference between the current low and the previous close. Calculation of Directional Movement (DM): Directional Movement measures the upward and downward movement in prices over a given period. It is calculated as follows: Upward Movement (DM+): If the current high is higher than the previous high, and the current low is higher than the previous low, then DM+ equals the current high minus the previous high. Otherwise, DM+ is zero. Downward Movement (DM-): If the previous low is lower than the current low, and the previous high is lower than the current high, then DM- equals the previous low minus the current low. Otherwise, DM- is zero. Calculation of the Average True Range (ATR): ATR is an exponential moving average of the True Range over a specified period. Calculation of the Positive Directional Indicator (+DI) and Negative Directional Indicator (-DI): +DI: It is calculated by dividing the exponential moving average of DM+ by the ATR and multiplying the result by 100. -DI: It is calculated by dividing the exponential moving average of DM- by the ATR and multiplying the result by 100. The +DI and -DI lines provide information about the strength of upward and downward price movements. When the +DI line is above the -DI line, it indicates bullish strength, suggesting that buyers are in control. Conversely, when the -DI line is above the +DI line, it indicates bearish strength, suggesting that sellers are dominant. Additionally, traders often look for crossovers between the +DI and -DI lines. A bullish signal occurs when the +DI line crosses above the -DI line, while a bearish signal occurs when the -DI line crosses above the +DI line. These crossovers can be used to generate buy and sell signals. The DMI is often used in conjunction with the Average Directional Index (ADX), which measures the overall trend strength. The ADX can help confirm the signals generated by the +DI and -DI lines. It's important to note that the DMI is just one tool among many used by traders and investors to analyze markets, and its effectiveness may vary depending on the specific financial instrument and market conditions. It's advisable to use the DMI in combination with other indicators and analysis techniques for comprehensive decision-making. Visual Examples of how to use the tool. You may also consider changing chart types to Hieken Ashi in order to smooth price data to prevent false trend changes You can see in the image below a lot of the false trend changes where remove The Average Directional Index (ADX) is a component of the Directional Movement Index (DMI) system and is used to measure the strength of a prevailing trend in the market. While the +DI and -DI lines of the DMI indicate the strength of upward and downward price movements, the ADX provides an overall assessment of the trend's strength, regardless of its direction. The ADX is calculated based on the smoothed averages of the +DI and -DI lines. It is typically displayed as a single line on a separate chart, ranging from 0 to 100. The interpretation of the ADX reading is as follows: ADX below 20: This indicates a weak or non-existent trend. It suggests that the market is in a consolidation phase or is experiencing erratic price movements. Traders may choose to avoid trading or use range-bound strategies during such periods. ADX between 20 and 40: This suggests the development of a trend. As the ADX moves toward 40, it indicates increasing trend strength. Traders may consider entering trades in the direction of the prevailing trend, as it suggests that the market is becoming more directional. ADX above 40: This signifies a strong trend. A rising ADX indicates a strengthening trend, while a falling ADX suggests a weakening trend. During such periods, traders may prefer trend-following strategies and look for opportunities to ride the momentum. ADX above 50: This indicates an extremely strong trend. A reading above 50 suggests a robust and well-established trend. Traders may choose to stay in their positions and avoid counter-trend trades. It's important to note that the ADX does not indicate the direction of the trend, only its strength. Therefore, it is often used in combination with the +DI and -DI lines to confirm the presence of a strong trend and its direction. For example, when the ADX is rising above 20 and the +DI line is above the -DI line, it suggests a strong bullish trend. Conversely, when the ADX is rising above 20 and the -DI line is above the +DI line, it suggests a strong bearish trend. By considering the ADX in conjunction with the +DI and -DI lines, traders can gain a more comprehensive understanding of the market conditions and make informed decisions about entering or exiting trades. Visual Example of the use of the ADX line below
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by ChristopherDownie
Cryptoindex 100 analysis (CIX100)Introduction Cryptoindex 100 is an index of top 100 coins, obtained from a proprietary algorithm called "Zorax" . "Over 1,800 coins are put through our fixed set of filters, which provides around 500 coins as a rough output. Data is collected from cryptocurrency exchanges, news, social media, such as Twitter, GitHub, and other sources. The collated data is used to extract over 200 factors that create a refined ranking in the index. Then, the factors are fed into the neural network, creating a final rating of coins, with the top 100 coins making up the Cryptoindex 100". Graphic Analysis The index is testing the resistance of 2. In a bullish scenario, it needs to break through the diagonal white line and still move through the 200 simple and exponential moving averages.
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by andre_007
ADX + DMI + LineReg Live TradingI used the replay trade function to test out ADX+DMI + using a LineReg to set TP + SL areas. I thinked it worked pretty well trading USD/JPY for the week of 1/9/2023. Success rate was 66.67% but I wasn't having strict trading rules since I was trying to trade how a normal would psychologically. I think with follows stricter rules this could have higher percent win rate & higher profit. Even with losses I was hit with I still cleared over $2000 for the week. Please ignore my girlfriends family as they are cleaning out a closet lol
by niksidnayr26
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