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DMI

NZD/USD skyrockets towards the targetsIt's a daily chart of NZD/USD. From the 19th of March 2020, it started to rise and still moving upward. For an easy understanding of the trend, I have applied the DMI and SuperTrend. Let's take a look at indicators, DI+ is above DI- that means the trend will continue to move upside. ADX is greater than 25, which also indicates the upside movement. Now talking about the trend, At present, the trend is moving upward, and it's marching towards the targets, which are 0.7160 - 0.7260 . But if the trend crosses the control price and successfully makes consecutive candles, then targets for the fall will be 0.6900 - 0.6800 .
by forextidings
Heikin-Ashi + DMI + Pitchfork = A super easy trend system!I have been trading this system recently and have been surprised at how easy it is to trade with a predominant trend. Using a unique 3-indicator system composed of Heikin-Ashi + the DMI + Pitchforks allow a trader to reduce chart noise and stay in a trade until the trend has exhausted itself. The basic rules of the system include waiting for buy signals on both the Heikin-Ashi and the DMI and then exiting a trade when both the DMI and Heikin-Ashi have given sell signals. The Pitchforks serve as hidden support and resistance and help the trader with placing stop losses based on swing points of the candles and the next nearest pitchfork support lines to minimize chances of stops being triggered. The Pitchforks are also useful for identifying potential reversal zones to enter and exit trades if a trader notices particular pitchfork lines support price more significantly than others. Extra layers of support/resistance confluence can be added with Fibonacci Retracements and Extensions/Projections at these potential price reversal zones. I personally do this myself but the chart does get a bit cluttered and was hard to show clear entrance/exits with them included on here in this photo. I personally use this on shorter time frames (3min) and it is just as accurate, however, TradingView requires a minimum 15-min resolution to post an idea. I imagine, as with all trades, the longer the time frame the stronger the signals, and the shorter the choppier the trades could get with being stopped out. While I have not tested this extensively, reversing this system for a short does work as well (data not shown on this chart). I have not tested longs or shorts on futures or Forex, so YRMV, and I would suggest testing extensively before implementing on those markets. Illustration of this system can be seen on $FUV on the 15min chart. It shows two trades, first with a trade of 51% profit and a second of 24%. Average return over two days was 37.5% profit. Pros of this system: Very easy to use to identify and trade in the direction of the predominant market trends Makes it easy to identify Elliot Waves, XABCD, or ABCD market geometry setups due to the nature of the Heikin-Ashi Candles Ample noise reduction for "nervous" or new traders to make sure they catch the most of a trade trend with easily identifiable entrances and exits PDT traders may find this system on longer periods/for swings more agreeable than day trading since it minimizes number of trades and maximizes potential return Traders with full time jobs may find this more agreeable as it is a "set-it and forget it" type of system where they can schedule alerts/exits on the DMI cross over threshold to focus on other important things Cons of this system: Trading during ranged markets can lead to being stopped out or quickly lost profits (additional period length or higher level can minimize this risk, see below) Missing out on "perfect" entry and exits due to combining two lagging indicators Heikin-Ashi does not represent "true" chart price and it is recommended to add the real stock price on the chart somehow or have broker open with true price to not miss a potential entrance/exit if price reverses quickly/strongly System Settings: Heikin-Ashi = Standard DMI length = 5 period, 20 level (can adjust both period and level higher or lower depending on needs of the trader. Longer = less profit but stronger signals; shorter = max potential profit but more frequent trading/more chop). Pitchfork = Schiff (change angle more vertical to Modified Schiff or Original as trend goes outside of Schiff Fork if needed. I prefer to just clone the Schiff and move it higher or lower above the main fork since I trade corrections).
FEducation
by christoefert
4
BRN consolidation over?Quick technical analysis of ASX:BRN following its rapid rise and subsequent consolidation over the past two months. In summary: Indicators are showing that support has been found at ~$0.31 and the .236 fib retracement level / -0.5 schiff resistance level has been tested. As per BBW, volatility is decreasing which indicates that a breakout may be on the horizon. The BBW-squeeze also shows a potential alert for an entry point. This is supported by the Vix which hints that we have moved away from market bottoms. Finally, DMI+ remains above ADX and has been toying with the 25 level. Movement above this level would further strengthen technical indicators for ASX:BRN . The above indicate that BRN is in a favourable position for opting in. This would be further strengthened by positive news and / or increase in trading volume. DYOR.
ASX:BRNLong
by chartorscience
BTCUSD | Two important questions about further price actionAfter trading below $11 000 for weeks, Bitcoin finally broke above that psychological level with a 5% increase in the past 24 hours. The alt coins have come along for the ride, and the market cap has jumped by nearly $20 billion since yesterday. The price rally finished 5 impulse Elliott waves pattern and formed an ascending supportive trend. The consolidation area is located around $11 300 zone which is represented by Ichimoku green cloud. Q1: What should happen next? We can see decreasing trade volume based on oscillator relative value which is below 0. Directional Movement Indicator (DMI) is still bullish but +DI line decreases and soon will cross key level. Such conditions reveals decreasing buying power and upcoming trend shift. Based on these findings we can forecast a small local increase but it soon should change to a downtrend which can bring the price to consolidation area near with $11 300 area. Q2: Will this level hold the retracement? It is possible due to bullish mood of the market and DeFI market capitalization outflow back to spot market. However 5 Elliott waves pattern is usually followed by Elliott ABC corrective waves which work perfectly with Ichimoku clouds indicator which shows where downward pressure should meet a strong resistance. In such cases price action tends to decrease until lower red edge which acts as a support. Summary Elliott ABC correction wave pattern has not been finished yet. It still can be rejected if price bounces from support near (B) point. In this case we can see a new growth waves begin. However there is a higher probability of retracement pattern to be finished and in this case we will see Bitcoin's price action in lateral trend around $11 030 level Hedge your positions with strict risk management settings Best regards, SkyRock Signals team
COINBASE:BTCUSD
by Skyrexio
2
Crypto Trading 101: Trading Bitcoin With The DMIThe Directional Movement Index (DMI) is one of the few indicators that can be used on its own in trading, especially when it comes to swing trading. The DMI can work as a standalone indicator because it is made up of multiple indicators, specifically: the +DI, -DI, and the ADX indicator. Let’s now dive into how these components fit together! +DI & -DI The +DI and -DI are two lines that measure the strength of positive and negative trends. +DI indicates a positive trend, and in our case, it is marked by the color blue on the chart. -DI represents a negative trend, and it is orange in our graph. When the +DI is above the -DI, the bullish pressure is larger than the bearish one. And if the negative line is above, the bears are dominating the market. Therefore, a bullish signal is given when the +DI crosses the -DI upwards, and a bearish signal is given when the +DI crosses the -DI downwards. ADX You may have noticed the positive (+DI) and negative (-DI) lines have crossed many times on the chart, but we have identified only a few signals (indicated by the green circles on the graph). This is because the signals from the +DI & -DI lines are filtered out by the ADX. The ADX identifies the strength of a trend and the volatility in the market. The white line on the bottom graph represents the ADX, while the horizontal black line has an ADX value of 25. Therefore each time the ADX is above the black line, it indicates a strong market trend and volatility. Following June 3, 2020, the ADX filtered out all of the +DI and -DI signals until the 20th of July. Not trading was preferable as the market has been ranging and was not the best time to trade due to the low volatility. We have used the following settings when creating this analysis. Stop Loss: 5% Trailing Stop loss percentage 2% and arming at 7% —CRYPTOHOPPER—
by cryptohopper
Gold is going down ...I'm predicting a 50% move down until 151, or possibly a little lower to 148 with a target of around July 6th. The DMI is looking like it will cross. The ADX, which represents strength of move is a little low for me. But that could go higher by the target date. The MacD is starting to decline. (not included) The CCI is in the overbought position. The Stoch RSI which is leading indicator has crossed signifying a down move. I have the EM, MA, and WMA because I am trying to learn more about them right now.
AMEX:GLDShort
by Princessgirl
8
Critical CrossroadsWhat a rodeo it has been for BTC as we enter the new year. Complete opposite of 2019 start which had us at ~3700. Is this a repeat of 2015 & 2016? Time will tell as we progress in this new year. Over a week ago, we successfully broke through the mid-term downtrend to establish a quite a steep short-term uptrend . That uptrend is now broken and we are in an unconfirmed, steep downtrend which could try to push us further down. Both the shallower uptrends remain unbroken with the mid-term uptrend being unconfirmed. There is a good possibility of touching the previous broken downtrend to bounce off it as we approach the critical crossroads where the trend intersect with the LT (long-term) uptrend and the support line @ 7411. Indicators We are still in a valid uptrend as seen from the DI+ being above the DI- in the DMI indicator. RSI (not shown) remains rather bullish still despite the most recent push down. Likely to bounce soon in the ~8250 zone. Stoch RSI (again, not shown), looks to be leveling out and could turn in the next 2-3 days. This is not indication of an uptrend by itself but shows promise when looking at other indicators. ATR : Any extreme moves beyond the current average should be taken with great scrutiny. So far, we are within range but an extreme swing down could lead to some ranging as we try to return to mean. Prediction My forecast for the upcoming week is mostly bullish due to the fact that we are faced with a steep trend down which are never long lived. It could still trace downwards for a little while long but I can see a swing back up in the next few days based on the indicators currently. Any crossovers of the indicators to bearish should be taken as a warning foreshadowing that the bears are ready to make a move. Breaking the LT uptrend is also dire warning to the downtrend to come weeks after it crosses and maintains past it. If we continue up, a shallower uptrend will be beginning to form which could direct us further up. I just don't see a -51°trend as remaining for much longer. Good luck and happy trading. Remember, the trend is your friend and your enemy if you make it to be.
BITSTAMP:BTCUSD
by ItisCalvin
S&P 500: Headed lower?Since this "miracle" rally began after Christmas, many investors have wondered when shorting seems like an option. In my opinion that time has pretty much arrived. Of course during this rally there were some small short opportunities but then again trading against the trend can be tricky and costly aka "The trend is your friend". On the other hand we have of course the full saying "The trend is your friend until the end when it bends". In my opinion that bending has pretty much started. As seen in the chart after the new ATH it started a decent, making the DMI's cross and tipping the SAR in "reverse". Now the SAR isnt always perfect so generally I wait a few days for confirmation just like the ADX/DMI because technically the ADX needs to be above 20 to be "trending". After a few days it dipped below the Wilder's MA and staying below that even after a short "bull" move. In the same period the DMI- showed that negative pressure still had the high ground even after a couple green candles. Now that the ADX line reset itself I think we can see the start of a new trend more clearly. First of all a break through the 2800-2820 zone would be best since that this area has some history of being a "sup/res" point. After that is completed I expect it to drop about a 100 points tot the 2700-2720 area. That would be more a psychological barrier but has some ground as support. Finish that I think a target at 2600 would be reasonable. Any questions or comments feel free to do so. Please keep it civil! Other than that I wish you Happy Trading. Disclaimer: Use this analyses however you want, but don't come knocking on my door for your losses. Trading this would be your own risk and I'm not obligated to take responsibility for that.
TVC:SPXShort
by HungrywolfNL
Rising Wedge on XBTUSDCurrently seeing a Rising Wedge on the macro time frames, these patterns are typically bearish, but could see a breakout to the upside about 30-35% of the time. If we breakout upward your target remains 6200. If we fail downward, there is a support at 5600 which is a daily pivot, there is a also a 4H doji level which will be your failure target at 5455. If that level is broken you have a significant daily HVN (high volume node) around 5200-5300. If that is broken, then look to 4800 as a significant support, unlikely to reach this level. DMI is currently still bullish, but is constricting showing that the trend is weakening.
BITMEX:BTCUSD.P
by DejaBrew
BTC Daily - Renko, MA (20,50,100,200) & DMIOverall Summary: Overall I am bearish. Bitcoin is trading in the $3600 to $4200 range during the last week, 81.5% down from the ATHs, with a market cap of $63 billion. The chart indicates a continuation/consolidation/reversal of the current X trend. The price is closest to the 50 MA with a trend towards the 50 MA. The volume has decreased over the last week, which is supporting the current price action. During the period the ‘dominant’ DMI switched over and it is now the -DMI and a weak trend strength ADX of 19. Detailed Summary: This chart uses weekly Renko Candlesticks with 4 MAs (20, 50, 100 & 200) & DMI. Renko candlesticks are great for trend trading. Renko means ‘brick’ in Japanese because the candlesticks represents only price movements. Although some price action is missed, Renko makes it very easy to identify key trends and support and resistance areas. This chart style is often used along with Heikin Ashi candlestick charts for greater confluence. As you can see, there is very little ‘noise’ in this style of chart, allowing traders to ignore short term trends. I set the security at $50 per block so that every block represents a $50 price move. During the last week the price has ranged by $500, opening at $4100 and closing at $3600. The price has decreased over the period which is a continuation of the long term price trend. Moving Average are also used on this chart to help identify major areas of S&R and general price trend action. I prefer to use simple Moving Averages on the daily time frame. The 200 MA is red, the 100 MA is orange, the 50 MA is yellow and the 20 MA is green. The choice of colours helps me to read the chart and see if price action is bullish or bearish. For example, if the red is on top and the green is on the bottom, it is clearly bullish. It is also important to note that the longer the Moving Average period, the stronger the support and resistance. During the last week the price is closest to the 50 Moving Average and during this period it has trended towards/around the 50 Moving Average. The 50 Moving Average is currently acting as resistance while there is no MA acting as support. The key Support area is $3300 and key Resistance areas is $4200. I forecast in the next week that price will test the next support area. Volume is a key indicator that I use to understand past, current and possibly future price action. Unfortunately a majority of the exchange volume is fake ‘wash’ trading so it is important to rely on data from reliable exchanges like Binance and BitFinex. Volume that supports price recent action helps strengthen my belief in a specific trend. During this period volume has decreased in convergence with the recent price action. On a longer term time frame, the volume is in convergence with the long term trends. I forecast in the next week that volume will decrease and this will support a decrease of price. DMI (Directional Movement Index) is a popular trend trading momentum indicator that measures Moving Averages and is able to identify trends while ignoring ‘noise’. It is used on combination with other trend indicators to build confidence about price actions and trends. Look for divergence and convergence between these three lines: Green is the +DMI or +DI, represents bullish action, Red is the -DMI or -DI, represent bearish action and Yellow is the ADX , is an average of the above two and sums up the MA trend. At the start of the period, the ‘dominant’ DMI was the + DMI, at 41 while the ADX was at 18. During the period the ‘dominant’ DMI switched over and it is now -DMI and the ADX is 18. This indicates a convergence with the long term price trend and a weak trend. I forecast in the next week that the that ‘dominant’ DMI will increase and this will support a decrease of price. References: Renko summary - www.investopedia.com Moving Average summary - www.investopedia.com Support and Resistance summary - www.investopedia.com Fake exchange volume summary - www.blockchaintransparency.org DMI summary - www.investopedia.com
BITFINEX:BTCUSDShort
by CarbiArbittrage
NEUTRAL 1D Renko Chart with CM_Trendbars, EMAs and a custom DMIThis is a 1D BTCUSD (BitFinex) chart using Renko Candlesticks along with a CM_Trendbars (add on), 4 EMAs (9,15,21,55) and a custom DMI - with a focus on the last month of price action. Renko Candlesticks patterns come from Japan and Renko means ‘brick’. They are a cousin to the Heiken Ashi candlestick patterns, using weighted calculations of the OHLC (Open High Low Close) but without the time. So in simpler terms, they focus on price trend expressed in price blocks ($50 USD for BTC), rather than time and volume. As a result, Renko charts are great at reducing noise and allowing for only the strong trends to be clearly visible on the chart. Trend traders often use this chart style in conjunction with other charts styles and indicators, to clarify the strength and direction of a trend. BTC hit a 2018 low on the 14th of December, ending a year long bear market that has shredded the market’s confidence (and wallets). The current bottom, which may or may not go lower in 2019, came ironically a week before Xmas. A gift of not, there are two ways to look at it. We then saw a weak bounce of around 3300 with a price trend that grew in strength as it broke through the 3600 S&R level. Two days later on the 20th of December, price had hit the next major S&R area of around 4100 and clearly got rejected. Since then we have seen three tests (rejections) of the same price level, on the 22nd, and 28th and now on the 2nd of January. Three tests in under two weeks demonstrates that there is clear indecision ATM in the market. It is worth noting that Christmas and New Year typically affects the market, as trader's go on holiday and take out money to spend. A clean bullish break could see prices quickly reach around 4450 area and increasing confidence that the market has bottomed out. A weak rejection and further sideways movement would strengthen the case for the bulls, and we could return to ATL of 3300 fairly quickly. Looking at the CM Trendbars, which is an indicator added on top of the Renko candlesticks that 'colour's the bars depending on the strength of the price action, I read them as slightly bullish in the short term but clearly we need confluence from other indicators. Moving Average are also used on this chart to help identify major areas of S&R and general price trend action. I prefer to use EMA (Exponential MA), over the non-weighted (Simple MA) because it adds more significance to recent price action over older price action. This provides a more responsive indicator, telling me when a significant trend change is occurring earlier. I have for EMA, 4 based on the Fibonacci numbers; 9 (green), 15 (yellow), 21 (orange) and 55 (red) day time frames. And a 200 day MA (purple). The choice of colours helps me to read the chart and see if price action is bullish or bearish, for example when the green line is at the bottom, followed by the yellow, orange, red (and then purple) it is clearly bearish. Not that the 200 EMA is essentially for identifying long term trends, but I focus on the 9-55 period for trend trading, especially the 21-55 day for multiple week trades. The last time price crossed the 200 EMA was on the 2nd of September and the 55 EMA on the 18th of October. So the market was expecting a price retrenchment in December. Whether this is just a retracement, before we see the downtrend continue, is not yet clear. What is clear is that we saw a bullish bounce since December 14th with the 9, 15, and 21 crossing over within a week. The 9 day then approached and briefly breached the 55 EMA before dropping below it again since the 25th of December. The MA have since continued to consolidate as we have seen price action tighten around the 4100 S&R levels. This types of MA consolidation is another indicator that the price direction and strength is undecided by the market. The final indicator is a custom DMI, which is a suitable tool to add alongside the Renko chart and 5 MAs, as it measures the MA of a price change over a given period of time. It is therefore another great tool for identifying trends, and helps to build confidence about price action and trends. We are looking for divergence and convergence between these three lines: - Green is the +DMI or +DI, represents bullish action - Red is the -DMI or -DI, represent bearish action - Yellow is the ADX, is an average of the above two and sums up the MA trend. The ‘dominate’ DMI has been the -DMI since the start of November, reaching a strength peak of 94 on the 24th of November. Since then we have seen a sharp decline in the strength of the -DMI with a cross over of the ADX on 3rd of December. Although we saw the -DMI ‘dominate’ again a week later it crossed over at 49. In the last month the market’s indecision has been clearly demonstrated by six ‘dominate’ crossovers. At the same time all three lines continue to decline with the ADX now well below 25, at 16. When the market is moving sideways and below 25, it is risky to trend trade. On the flip side, the longer the market continues to consolidate in this range, the larger the price action will be once it breaks out (either up or down). In combination, the above indicators tell me we have experienced significant bullish price action in December and now the market is consolidating and moving sideways at the 4100 level, below the 55 MA, and with a declining ADX. In the current market, trend trading is unattractive, so I have to wait for a clear breakout either on the up or downside. I am inclined to remain a little bearish ATM and believe we could see price move back down again to the low 3000s range if the bulls are unable to gain more momentum soon.
BITFINEX:BTCUSD
by CarbiArbittrage
BTCUSD 1D Renko Chart with CM_Trendbars, EMAs and a custom DMIThis 1D BTCUSD chart is based on Renko Candlesticks, the CM_Trendbars, 4 EMA (9,15,21,55) and a custom DMI. Renko Chart patterns come from Japan, and they apparently mean 'brick'. They are a cousin of the Heikin Ashi candlestick patterns, using weighted calculations of the OHLC (open, high, low, close) but without the time. Renko candlesticks are now well know but there are sections of the trading community that strongly believe in them. The candlesticks are built using price only, rather than time and volume. This design helps filter out minor price movements to make it easier for traders to focuso on the important trends. Renko charts are not for the day trader, they are really suitable for longer term trend traders that have patience and are waiting for the right types of setups. Each bar represents a set change in price, for example I have set BTC at $50 USD. Renko can be used to add confluence to other indicators and enter into less risky trend trades. The Renko chart has clearly bearish since the 9th of November, with BTC breaking below the long held resistance line at 6484 and rapidly dropping to 3900 before finally bouncing off 3300's. This has clearly been rejected on the 17th of December when we moved from 3382 to 3938 in two days with a forecasted target of 4416 representing the next area of resistance. I conservative trader would wait for a line of resistance to be broken, and then enter the trade with more confidence, so if 4100 area Moving Averages, are widely used and one of the most important technical indicators. There are two commonly used MAs, SMA and EMA. SMA (Simple MA) simply takes adds up the closing price over a given period say, 5 days, and divides that number by the number of periods. Eg, 10,12,14,16,18 = 70/5 = 14. The EMA (Exponential) then weights those numbers to place greater significance on the more recent price data points. I use the EMA as it tends to provide a more relevant indicator of recent/current and therefore possible future price actions. I use 5 EMA's on this chart, based on Fibonacci numbers (9,15,21,55,200). The EMA's have been clearly bullish since the 9th of November, with a good spread between the difference EMA, until the 9,15 and touch the candlestick bodies early in December. They then continued down, although more weakly then the previous move until we hit the 3300 level of resistance. With little price movement and contracting price bands the EMA were gradually leveling off. Then on the 17-19th we have seen the price clearly cross the 9,15 and 21 day EMA with the 55EMA in ear shot. The 200 EMA is at 5200, so we are still 1000+ clear of that target. THE DMI (Directional Movement Index/Indicator) measures the MA of a price change over a given period of time, 15 days in my case. The DMI is popular with trend traders because it provides clarity on the strength and direction of a trend. There are three lines, the +DMI or +DI in green, the -DMI or -DI which is in the red, and the ADX which is an weighted average of the two that tells up are we trending down/up. Basically when the green crosses over the red, and also the yellow, with conviction we have a strong bullish trend in play. Vice versa. The line on the top, is referred to as the 'dominate DMI'. The long the the MA has remained in a tight price band, the more likely an outbreak will be substantial. The DMI presented a very clear signal from since the crossover on the 7th of November to it's peak in divergence on the 24th of November. The -DMI and the ADX were clearly trending bearish. What could be interpreted a false bounce/price reversal occurred from the crossover bullish on the 25th of November to the bearish cross over on the 3rd of December. The bearish trend continued until the 7th of November then we started to see some divergence between price (that continued to drop) and the -DMI that weakened in strength. This was a signal that the strength of the bull trend was weakening. Since the 17th of December we have seen both the -DMI and the ADX weaken rapidly, finally crossing the +DMI on the 19th of December. This is set up represents a low risk entry, as the -DMI has managed to go from below the 25 level, confidently cross the -DMI/ADX and also the price has broken a major S&R level.
BITFINEX:BTCUSDLong
by CarbiArbittrage