Forum Archive Index - July 2002

[Phaedrus <Phaedrus@techemail.com>]

T100,
      I too am using the MS default DMI period of 14. The crossover I mentioned 
occured on 28/6/02, when the +DI was 28 and the -DI 27. This crossover is so 
small that it is very hard to see unless you zoom in on it. In any event, it 
has now reverted back to how it was. This is what happens with trending 
indicators when there is no trend - you get a string of conflicting, useless 
and unprofitable signals. The important point is this - since the ADX had 
already dropped below 25, indicating the end of the trend, any signals 
generated by DMI crossovers are void anyway.
 I have been monitoring this particular downtrend using a trendline, a moving 
average and the DMI, using Closing prices only, without regard to candlesticks. 
The close that triggered the DMI crossover on 28/6/02 was $4.20 - less than the 
close of $4.24 on 21/6/02, which was the previous high. So, the crossover 
occurred on a lower high, not a higher high as would be found in an uptrend. 
Just another reason to discount the crossover, and not buy. 
 Using candlesticks, and different logic, you have come to the same conclusion. 
That is what having an individual trading system is all about. I have been 
posting charts showing my way, not THE way - there are many roads to Mecca.

       Regards,
                  Phaedrus.

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