DMI technical index
Actually, I don't know much about DMI indicators. Thank you. @Meta MooLet me have the opportunity to know and learn these technical indicators. Next, let's learn together:
DMI index is a medium-and long-term stock market technical analysis method.
On the method of using DMI indicators: the basic usage of the system: when the market tends to be obvious, the effect of the index is ideal. PDI (ascending direction) MDI (descending direction) ADX (tending to average)
1. The PDI line breaks through the MDI line from the bottom up, indicating that there are new bulls entering the market, which is a buy signal.
2. The PDI line falls below the MDI line from top to bottom, indicating that a new short is entering the market, which is a sell signal.
When the 3.ADX value continues to be higher than the previous day, the market will maintain the original trend.
The 4.ADX value is decreasing, falling below 20, and when moving horizontally, the market atmosphere is consolidation.
5. When the ADX value changes from a rising tendency to a downward trend, it indicates that the market is about to reverse.
Parameters: n statistical days; M interval days, generally 14,6
Well, have you learned it?![]()
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Let's do it in practice. I chose it here. $Berkshire Hathaway-B(BRK.B.US$
1. Notice that the PDI line in the green grid in the chart breaks through the MDI line from the bottom up, showing that there are new bulls entering the market as a buy signal, and you can see that the stock price is rising.
two。 On the contrary, you can find that the PDI line falls below the MDI line from the top down in the red grid of the chart, indicating that there is a new short coming in, which is a sell signal when the stock price is falling.
3. When the ADX value continues to be higher than the previous day, the market will maintain the original trend. Observe that the ADX value in the green grid of the chart is gradually rising, and the upward trend is being maintained at this time.
4. Pay attention to the red grid in the chart. When the ADX value changes from a rising trend to a downward trend, it indicates that the market is about to reverse and the stock price is falling. When the ADX value is decreasing, below 20, and moving horizontally, the stock price is in the process of consolidation.
DMI index is a medium-and long-term stock market technical analysis method.
On the method of using DMI indicators: the basic usage of the system: when the market tends to be obvious, the effect of the index is ideal. PDI (ascending direction) MDI (descending direction) ADX (tending to average)
1. The PDI line breaks through the MDI line from the bottom up, indicating that there are new bulls entering the market, which is a buy signal.
2. The PDI line falls below the MDI line from top to bottom, indicating that a new short is entering the market, which is a sell signal.
When the 3.ADX value continues to be higher than the previous day, the market will maintain the original trend.
The 4.ADX value is decreasing, falling below 20, and when moving horizontally, the market atmosphere is consolidation.
5. When the ADX value changes from a rising tendency to a downward trend, it indicates that the market is about to reverse.
Parameters: n statistical days; M interval days, generally 14,6
Well, have you learned it?
Let's do it in practice. I chose it here. $Berkshire Hathaway-B(BRK.B.US$
1. Notice that the PDI line in the green grid in the chart breaks through the MDI line from the bottom up, showing that there are new bulls entering the market as a buy signal, and you can see that the stock price is rising.
two。 On the contrary, you can find that the PDI line falls below the MDI line from the top down in the red grid of the chart, indicating that there is a new short coming in, which is a sell signal when the stock price is falling.
3. When the ADX value continues to be higher than the previous day, the market will maintain the original trend. Observe that the ADX value in the green grid of the chart is gradually rising, and the upward trend is being maintained at this time.
4. Pay attention to the red grid in the chart. When the ADX value changes from a rising trend to a downward trend, it indicates that the market is about to reverse and the stock price is falling. When the ADX value is decreasing, below 20, and moving horizontally, the stock price is in the process of consolidation.
Advantages: DMI takes into account the range of daily fluctuations in order to more accurately reflect the trend of the quotation and better predict the future development and changes of the quotation.
Disadvantages: DMI cross-signals are slower than other indicators in indicating market movements, so this indicator is more suitable for medium-and long-term investors and is not recommended for short-term investors. Sometimes, although the ADX index has shifted, share prices continue to rise and have not reversed.
The above is purely personal point of view, you are welcome to discuss it.![]()
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Disadvantages: DMI cross-signals are slower than other indicators in indicating market movements, so this indicator is more suitable for medium-and long-term investors and is not recommended for short-term investors. Sometimes, although the ADX index has shifted, share prices continue to rise and have not reversed.
The above is purely personal point of view, you are welcome to discuss it.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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