Category: Money Tips Date: 2006-01-27
Trend indicator (Directional Movement Index) is to explore the basic principles of the price rise and fall in the process of "equilibrium point", that is, by the tension between supply and demand through price changes to achieve "harmony", and then the supply and demand due to price Under the influence of each other, and then lead to tension in an endless process. DMI indicators for cross-trading can generate signals that can identify whether the launch Quotes. Market, a large number of technical indicators, must be used with DMI. Is not by virtue of the subjective and intuitive to determine the buyer the seller's two kinds of power, but to be scientific.
1, first obtained ± DM (towards changes in value)
+ - Up fall entries represent the positive and negative values represent a day in the trend of changes in value, can only be allowed a free choice between the two largest values, and not, and take.
+ DM = today's highest price - the highest price yesterday (take positive, otherwise 0)
-DM = today's lowest price - yesterday's lowest price (to take positive, otherwise 0)
2, TR, a real band, taking the biggest change in value (3 select one)
1. HL highest price minus the date of the day's low 2. H-PC the day the highest price - the gap between yesterday's closing price of 3. L-PC the day's low - the gap between yesterday's closing price of 3, the direction of line (DI) for the detection of higher prices or down of indicators to rise in the direction indicated + DI line,-DI said that the direction of line down the direction of DI DIF = up fall line and the direction of the difference between DI SUM = line up the direction of line and down towards the direction of the line and due to changes in the value of large, 14 days and therefore a smooth operator, that is, the tendency to get the average (ADX) "ADXR" yes "ADX" assessment of value, it is calculated to the day "ADX" and the 14 days before the "ADXR" phase divided by 2 plus draw.
DMI's analysis techniques:
1. When the (+ DI) up through the (-DI), is the buy signal, if the ADX up again, then the rally stronger. If the ADX to rise to a certain level, slowed down, it shows that even if the subsequent rise, rise will slow down, and maintained will not take too long, they will turn down, until the ADX and then turned around and turned up so far.
2. When the (â”?DI) up through the (+ DI), or (+ DI) below (â”?DI), is the sell signal, if the ADX upward, there will be more drastic decline until the ADX peaked down before confirm the emergence of the bottom, the subsequent decline is more moderate, and the rebound rebound phenomenon.
3. When the stock peaked when, ADX will then peaked at this time ADX of 70 or so, so the secondary discriminant function ADX bullish or bearish reversal signal.
4. When the (+ DI) and (â”?DI) relative to cross, there has been trading signals, followed by ADX and ADXR
Intersection is the last trading opportunity.
5. ADX climb up from between 20-30 hours, regardless of the prevailing prices are to rise or to fall, can be determined, will produce a considerable range of the stock market.
6. ADX in the + DI and-DI in the bottom, especially in the 20 below, on behalf of stock has already fallen into a recession in the dull finishing period, this time, wait to be out of the market.
7. ADX above 50, once more, suddenly turning down anti-fold, this time, regardless of the prevailing prices are to rise or to fall, all represent Quotes about to reverse.
