question about ADX line, DI+ and DI-

[mjstyle]

Hi tommy/doc am I right when i analysis like this

1) when the DI + is above the DI- that means a good signal however you have to see if the ADX is above 30, if it is, then it's considered an uptrend. If it isn't that means it's indecisive
2) when the DI - is above DI+ that means a bad signal and it also depends on the ADX.

Am i right?

[rb122756]

mj,

I was taught that DMI and ADX are trend indicators.  For an uptrend, If the DMI+ and the ADX are both heading up it's an indication of an uptrend and if both are above the 30 line, it's an even stronger indication that the trend will continue.  For a downtrend same thing, except you use the DMI- and ADX.  I've also observed over the years that a lot of times when the DMI+ and DMI- cross each other and head in opposite directions a trend reversal may be about to take place.

[mjstyle]

thx rb122756, so if the DMI+ and DMI- cross each other but the DMI+ is moving upward and the DMI- is moving downward, does that mean a reversal to the upside?

[Dr PennyStock]

thx rb122756, so if the DMI+ and DMI- cross each other but the DMI+ is moving upward and the DMI- is moving downward, does that mean a reversal to the upside?

That's correct.

[mjstyle]

thank you doc, i'm learning so much from this site.. wait until i make a big gain, i'm gonna donate like 1/3 hehe

[Dr PennyStock]

 , make good money first and only after that if you want donate some.

[mjstyle]

hehe i just evened out today after selling XRM since i'm down around a grand for JUNI stupid JUNI never buying triple 0 stocks again.. one more thing doc.. for a reversal to exist.. for example a upside reversal..

+DI cross -DI so +DI moving upwards and -DI moving downward, but does the ADX also have to be moving upward at the same time to be considered that the stock might move upwards from now on and vice versa?

 My other part of the question is the ADX is independent to +DI or -DI right like if they cross each other it means nothing right?

[niteowl660]

I'm under the impression that the ADX just indicates strength of the current trend, be it up or down

[Dr PennyStock]

I'm under the impression that the ADX just indicates strength of the current trend, be it up or down

That's correct, I assume you talk about the white line.

[Dr PennyStock]

hehe i just evened out today after selling XRM since i'm down around a grand for JUNI stupid JUNI never buying triple 0 stocks again.. one more thing doc.. for a reversal to exist.. for example a upside reversal..

+DI cross -DI so +DI moving upwards and -DI moving downward, but does the ADX also have to be moving upward at the same time to be considered that the stock might move upwards from now on and vice versa?

 My other part of the question is the ADX is independent to +DI or -DI right like if they cross each other it means nothing right?

The ADX indicates the strength of the the trend, the direction of +DI and -DI indicates the direction of the stock, when +DI points up is a positive signal, if the -DI points up is a negative signal, if the +DI cross the -DI to the up side it gives a buy signal, if the +DI also cross the ADX line to the up side, the buy signal is stronger.

[mjstyle]

thank you so much doc for the fantastic response.

[armin]

guy's, is  there like a site i can go to learn this more or possibly buy a book or two about this topic? im just not getting it threw my thick scull? and about the candle thing?

i want to be a pro, not to just make my call's and say whatever just by looking at charts.

to me ADX line DI+ DI- sounds like MUMBO JUMBO, and i dont want mumbo jumbo i want to be able to understand.

[Tommy86]

doc is not a fan of TA books, and i think i agree with him as long as he refers to the 800pages monsterbooks. there is just not that much TA to learn!

i bought a really small one, like 100 pages, read it in 2 to 3 days easily and it was just the basics you needed. unfortunatly its in german, so youll have to find one for you

[rb122756]

Tommy,

Do you think it would be worthwhile to have a forum for good learning materials (books, websites, etc.) on TA where we can post info on some of the materials we have found useful ?  I'd be interested in knowing what has helped other people with their trading.  I don't want to violate any rules of the board or advertise anything, just point people to materials that have helped me and check out materials that have helped others.

I know a lot of people are in the same boat as Armin - I try to learn something new every week.  I've learned a lot just participating in these forums  - there's a lot of material out there and no one wants to wade through millions of pages of stuff.  When I need to know what time it is, I don't want instructions on how to build a watch - in other words I'm interested in materials that will put me on the fast track and help me start making money immediately.  I don't really care why things work, I'm more interested in how they work and how they can make us more profitable.   Eliminate the 'mumbo jumbo'.

Let me know what you think.

RB.

[Tommy86]

rb122756, thats a very good idea! i think we should use this forum here (Technical Analysis). i invite you to open a topic named something like "Knowledge Resources on TA" or something similar.

like you said already, i am sure a lot of people will profit from it!