To all those who did not dedicate - The Swing Trading Guide

A Practical Guide to Swing Trading by Larry Swing
8.9 Directional Moving Index
The Directional Movement Index (DMI) is a trend-following indicator developed by J.
Welles Wilder, Jr., designed to determine whether a security is in a trending or non-
trending market. Since the market is in a strong trend only about 30% of the time
and in sideways about 70% of the time, this indicator is used to capture the period
when the market shows significant trending or directional behavior.
The calculation of the DMI is fairly complex and consists of three lines:
DMI
+DI: current positive directional index, the range of highs divided
by the price range over the last day and previous close, smoothed
over a given number of periods.
-DI: current negative directional index, the range of lows divided
by the price range over the last day and previous close, smoothed
over a given number of periods.
ADX: modified moving average of the difference of +DI and -DI
divided by the sum of +DI and -DI, multiplied by 100.
UpTrend:
� ADX > 30 the higher the better
� +DI > -DI
DownTrend:
� ADX > 30 the higher the better
� -DI > +DI
8.10 Up/Down/In/Out
Up/Down/In/Out is a chart overlay available on SwingTracker (software I recently
developed) that color-codes individual bars or candlesticks based on price
movement. It relates the current high and low price with the previous high and low
price.
Up (Green) indicates the current high is higher than the previous high and the
current low is higher than the previous low.
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