iCharts Discussions

[HARSHAD]

ADX/DMI - used for diffrentiating between trending market and trading market.
when DMI raises with the trend means that trend will b strong and will grow stronger as dmi crosses 20 . and profit booking of that trend will start from 35 to 50 .
now see the example :- nf when it rallyied recently from 2500 to 4700 , dmi reached 50 almost and thats max profit booking level of current uptrend . think of positional short or long as per dmi only after it crosses 20 with stop the (day's high or low) which caused it to move above 20.
now see example positional short which i took (was failed )- recently wen nf went down below 4000 dmi raised and rsi too was below 50 so positional short signal genrated stop loss for that short was 4131 which was previous days high. but it hit that stop.
but see now market is in trading mode as dmi well below 20 so its better not to trust strongness of any trend book small profits in a day and stay fresh.
one can use same theory on 15 minutes candles for intraday stuff only enter with the trend when DMI raises.
see ydays example for better understanding -16 july was trading day as dmi was coming down, and 17 july was trending one as dmi was raising. second 15 minutes candle on 17th july given DMI a rise that candle's low shud b stoploss till dmi reaches 40 50 levels.
feel free to ask querries .

thank u

[sriki_r]

Harshad,

Thanks for sharing this.

When the DMI hits 40 50 levels during the uptrend, can we take positional short calls or should we need to wait for any other indications?

Thanks,
Sriki

[saikat]

Harshad,


My first post in forum was about ADX. Giving the link below...

http://www.icharts.in/forum/adx-interpretation-t914.html

It may help you further...

Regards,

Saikat

[GKN]

Hi,
Buddy,what r the parameters which we use,i mean.
parameter in 5 min charts and above r same or different.
Thanks,
GKN

[mvnm]

harshad

thats the reason i was doubt full about the market as market was moving up has nearly moved up 600 points from low of 3918 but DMI has eight moving down or just flat and all the time it was below 20 so i was having the doubt about the markets bull strength. when such divergences occur market suddenly reverses caching us unawares. I use ADX has a guiding principle. when ADX does not raise along with the fall or raise then the trend is doubt ful.