Forum Archive Index - April 2002
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[sharechat] Commodity Selection Index
I am currently studying the concept of directional movement. In Steven
Achelis' book on p. 114 he makes the following comment(direct quote):
In Wilder's book, he notes that this system works best on securities that
have a high Commodity Selection Index. He says, "as a rule of thumb, the
system will be profitable on commodities that have a CSI value above 25.
When the CSI drops below 20, then do not use a trend-following system."
However, neither Murphy or Elder make direct mention of the CSI in their
discussion on directional movement.
Is the CSI simply a derivative of ADXR (Achelis appears to hint this)?
I would appreciate some clarification. I enjoyed your discussion on
directional movement on the "other channel" Phaderus.
Regards,
T100.
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