Forum Archive Index - July 2002

["trader 100" <trader_100@hotmail.com>]

Phaedrus,

I was interested to read your recent comments on the DMI in relation to BCA. 
  When you say “+DI has just barely crossed above the
-DI”. How many periods are you using?  My chart, which uses 14 periods (the 
default in MS), has DI+ remaining below DI- other than on the 28/6 when they 
were both at 28 so based on a DMI with 14 periods no buy signal has been 
generated.

You go on to say that “these signals were triggered by price action going 
sideways, as opposed to rising” but on my chart it was a bullish Marubozu 
candle that resulted in the first close above the confirmed trendline.  As 
my trading plan stands at the moment, I wouldn’t have bought BCA (even if 
the DMI based on 14 periods had signaled a buy) because the candle on the 
27/6 was a higher high but not a higher low than the 26/6.  The candle on 
the 28/6 had a higher high and a higher low than the previous day but I 
still wouldn’t have purchased because the candle was bearish.  Is this what 
you mean by your comment?

Regards,

T100.



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