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Hi Dickie,
The book you want to read is Wells Wilder's seminal work, New Concepts
In Technical Trading Systems (Trend Research, 1978). Don't let the
publishing date put you off, the book belongs on the shelf of any serious TA or
system writer as it contains not only construction and use of the ADX
indicator (DMI and derivatives), but also Parabolic SAR, ATR, RSI, CCI, and
several other indicators which Wilder developed and incorporated
into trading systems.
Fly out to Washington state and join our group -- the weather is cooler
than either TX or NY (and I've been in both). <VBG>
Peace and Justice --- Patrick
----- Original Message -----
Sent: Thursday, June 23, 2005 5:32
AM
Subject: [amibroker] Re: A Scan for
Stocks Making A Breakout From Base
Hi Dick - nice explanation. I need to read up on
Welles Wilder's
ADX. I was never very partial to it - thinking -
that by the time
you got a signal from ADX that a trend has formed - you
have already
lost the best part of the trend. Maybe I'm wrong - but
I have to
borrow some bks from the lib and check it.
So - you guys have
a group in Dallas to discuss this sort of stuff.
Thats nice.
Wish I knew of folks who would like to get together in
Long Island or
NYC.....share ideas.
Will take a look at your code again...when I get a
break from
work....which may not be for sometime.......plus I got some
ideas in
my head that I would like to test..........on money flow and
all.
Need to check out Steve's cleanup of my FVE
code.....Aahh!! so much
to do - so little time..... :-)
---
In amibroker@xxxxxxxxxxxxxxx, "areehoi" <hoierman@xxxx> wrote:
>
Dickie,
> Glad you ask about the PDI and MDI indicators. They are
a part of
the
> ADX (Average Directional Movement Index) developed
by Wells Wilder.
It
> is an oscillator that fluctuates between 0 and
100. It does not
> determine Bullish or Bearish but rather the
strength of the current
> trend. You will find it in the AFL formulas in
the AmiBroker
library.
> The ADX is actually derived from two
other indicators developed by
> Wells Wilder. They are the
Positive Directional Indicator (+DI or
> PDI) and the Negative
Directional Indicator (-DI or MDI). These are
> built in indicators for
AmiBroker. In most activity (TA) buy and
sell
> signals are
generated when one crosses the other or is above or
below.
>
I've been taught for Longs never take a position unless the PDI has
>
crossed or is above the MDI. The opposite for shorts. We have
a
> Amibroker users group here in Dallas that consist of AmiBroker,
Trade
> Station and MetaStock users. We have discussed these
indicators at
> length and the consensus is to make sure the PDI has
crossed or
above
> theMDI (for longs). So, I have included it in
most of the formulas I
> use. Hope this clarifies.
>
> Dick H.
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