Stock Screens: Directional Movement
The third suggested Directional Movement filter is: When ADX turns up or turns down.
There are several ways to measure this:
-
ADX today is greater than ADX
yesterday. This may be too volatile, requiring some
form of smoothing (as in the options below).
-
ADX has risen for x days (or fallen
for x days ). If the user inserts a value of "1" day,
the result is the same as for "1." above. If they insert a
value of "2" days, the security will be included only if ADX
has increased on 2 consecutive days.
-
ADX today is x points above (or
below) ADX from 5 days earlier. This way we need only keep 2
fields on the database: ADX today and ADX from 5 days
ago.
-
ADX is the highest (or lowest) in the last 5
days.
- ADX crosses to above (or below) a value x inserted by the user. For example: ADX crosses to above 20.
Please post your preferences at ADX
on the Chart Forum.
(Note that where I mention "5 days" we may offer alternative
options such as 2 or 10 days).
Trading Diary
September 12, 2002
These extracts from my daily trading diary are
intended to illustrate the techniques used in short-term trading
and should not be interpreted as investment advice. Full terms
and conditions can be found at Terms
of Use .
USA
The Dow fell 2.3% to close at 8379 on normal volume. A look at
the recent series of troughs and peaks (7500 - 8800 - 8000 -
8800 - 8300 - 9100 - 8200 - 8800) reveals weaker rallies
and longer corrections: a fading secondary cycle rally. The
measured objective for the latest correction is 8000 but the
index will first have to break through support at
8200.
The primary cycle trends down.
The Nasdaq Composite Index dropped 2.7% to close at 1279. The primary trend is down.
The S&P 500 closed down 23 points at 886. The primary trend is down.
The Chartcraft NYSE Bullish % Indicator bull alert signal is at 46% (September 11).
The primary cycle trends down.
The Nasdaq Composite Index dropped 2.7% to close at 1279. The primary trend is down.
The S&P 500 closed down 23 points at 886. The primary trend is down.
The Chartcraft NYSE Bullish % Indicator bull alert signal is at 46% (September 11).
Alan Greenspan
The Federal Reserve Chairman says that the US economy has slowed and asks Congress to cut spending. (more)
Gold
Gold closed up $US 2.30 at $US 318.70 in New York.
The Federal Reserve Chairman says that the US economy has slowed and asks Congress to cut spending. (more)
Gold
Gold closed up $US 2.30 at $US 318.70 in New York.
ASX Australia
The All Ordinaries closed down 7 points at 3091. Strong volume
and a narrow trading range on the equivolume chart signal firm
resistance at 3100.
The primary trend is down.
The primary trend is down.
Slow Stochastic (20,3,3) is above its signal line, MACD (26,12,9)
is below. Twiggs money flow signals distribution.
Lend Lease [LLC]
LLC is forming a stage 1 base after a lengthy stage 4 down-trend. The weekly chart shows strong support at 9.60 and the stock has now risen to the 150-day moving average after a bullish divergence on MACD.
LLC is forming a stage 1 base after a lengthy stage 4 down-trend. The weekly chart shows strong support at 9.60 and the stock has now risen to the 150-day moving average after a bullish divergence on MACD.
LLC has now formed a continuation
flag pattern at the 150-day moving average, while Twiggs
money flow signals accumulation after an earlier bullish
divergence.
Conclusion
Short-term: Avoid new entries. The Slow Stochastic and MACD are
on opposite sides of their respective signal lines.
Medium-term: Wait for the All Ords to signal a reversal.
Long-term: Wait for a bull-trend on the Nasdaq or S&P 500
(primary cycle).
Colin Twiggs
Thought for the Day:
We are what we repeatedly do.
Excellence, then, is not an act, but a habit.
- Aristotle.
We are what we repeatedly do.
Excellence, then, is not an act, but a habit.
- Aristotle.
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