Sunday, August 12, 2007

The Directional Movement Index (DMI)

The directional movement index provides a signal of trend presence in the market. The line simply rates the price directional movement on a scale of0 to 100. The higher the number, the better the trend potential of a movement, and vice versa. (See Figure DMI1.) This system can be used by itself or as a filter to the SAR system.

Figure DMI1. Example of the directional movement index (DMI)


Ghazanfar Ali Shah said...

awesome post thank you so much, keep it up.
forex trading

Anonymous said...

I just wish to say one thing. Deleting whole thing isn't good idea even you feel doing it. I say that from position that blogs like yours documenting now 5 years journey are inspiration to starting forex traders. I remember that few years ago when I wasn't forex trading at all but was on demo that I found your blog. It was so interesting that I read through all posts about forex trading. You don't get anything with deleting about forex trading and some others may lose. Let it be win win situation even if you don't post anymore about forex trading

Anonymous said...

Analysis is very important in forex trading, although it is almost never easy to do and usually takes a lot of time. Trading Analysis makes decision making a lot easier and the outcome is usually satisfactory. When start forex trading, analysis is very important because you can’t rely only on the money management strategy to succeed. You can forecast the direction of the market basing on your technical and fundamental strategies to see their effectiveness.

Amarjeet Prasad said...

Good post.

forex live trading
swing trading

Amarjeet Prasad said...

This is so cool! thanks for sharing

ganar dinero por internet
ganar dinero