acfncp3
59 posts
msg #65201
- Ignore acfncp3 |
7/18/2008 8:55:00 PM
I have two question regarding the DI indicators.
I have had some success with DI crossovers especially when combined with crossing the MA(30). Is there a way to filter for a sharp increase and decrease of these two lines at the crossover? Each line would be look like a 45 degree slope.
I've noticed that when the +DI and -DI are at extremes... say above 30 and below 15 that a reversal can be anticipated if they both reverse sharply. In fact the two lines will have sharp pts .. this is especially true if they happen at the same time. Is there a way to filter for this. I was thinking for an uptrend reversal you could say +DI increases by 5 pts and -DI decreases by 5 pts. Not sure if SF allows you to do this or not.
Thanks
|
WALLSTREETGENIUS
983 posts
msg #65209
- Ignore WALLSTREETGENIUS |
7/19/2008 12:55:24 AM
You're kinda all over the place with this. Give us a clear example with a ticker symbol showing this pattern and date it....that would be helpful, but don't get excited, because If I'm understanding correct, it does seem impossible. But let's see....
RIGGS
|
acfncp3
59 posts
msg #65217
- Ignore acfncp3 |
7/19/2008 5:54:30 AM
Thanks for looking at this.
These signals happen on all stocks let's look at AA for example.
I'll usually do a search for stocks that cross the MA(30) I'll then have to eye ball that the +DI(14) cross the -DI(14) with some nice separation. AA on 5/2 is a good example. By 5/6 you can tell that there is nice increases and decreases of the lines. I was wondering if SF could filter for these.
As far as reversal patterns look at two dates.5/19 - 5/20. Whenever there is a sharp reversal on the DI lines forming sharp peaks and valleys it seems to signal a reversal. The same happens with simultaneous peaks on 6/10 - 6/11. Is there any way to program SF to look for these?
Thanks again.
|
WALLSTREETGENIUS
983 posts
msg #65220
- Ignore WALLSTREETGENIUS
modified |
7/19/2008 9:13:01 AM
acfncp3 -
Before I dig into this, you mention "reversals" with +DI right?...well, I once laughed at a guy here at SF, that told us to look for divergence with both +DI & -DI. Yeah, the joke was on me, because he was absolutely right! Look for highs is price, and watch for LOWER highs with +DI line. It's really incredible! Same holds true with -DI. I never would have dreamed that DMI had such divergence signals, but you'll see it with ANY stock you pull up "IF" you change DMI to a (7) day period! Check it out....
For a quick example....I you look at (AA) on that last major high they had on 5/19, you'll see that +DI (14) showed no divergence right? Well, now look at the divergence with that same DMI with a (7) day period. BOOM! There it is...This why I use a 7-day period with EVERY indicator or oscillator I use.
Now look at -DI on 2/28 and 3/6. Do you see the neg divergence in price, and the pos in the -DI? Again, notice it's NOT on your 14-day period on AA? Very kool stuff....
Also, look for +DI and -DI to cross BELOW the ADX line when either (+DI or -DI) is below 30. Talk about a powerful confirmation as a continuation pattern....
...and since I'm on a roll...look for +DI in a healthy uptrend, to slightly fall (no sharp moves) and then look for -DI to continue to fall. This always tells me the trend will most likely continue. Obviously it works in reverse with -DI as well.
RIGGS
|