DMI indicator

[wezzley]

Hi folks, relatively new to forex, picking up the ropes & getting to know all the main indicators one by one.

Getting a bit muddled on the ADX - my specific confusion is this: in the GBP/USD 5 min chart at 08.55 today (7th June) the trend was down and confirmed by the ADX being in the 50's but.........a buy signal was given by the DI+ crossing up through the DI-

So a down trend but a buy signal. Should I ignore buy signals in a confirmed down trend, or perhaps consider a buy on the basis that the ADX while still high (and certaily over 25) is dropping off slightly,

All thoughts very much appreciated.

 

[hornblower]

try shortening the signal until it fits

 

[wezzley]

hiya, thanks for the reply, how do you mean 'shortening the signal'?

Ta,

Ben

 

[hornblower]

if you look in the indicator bar , and click on adx ,and a box should pop up and , and you should see a small box and you will be able to click on it to go up or down shorten the signal until it fits
good luck
Hornblower

 

[wezzley]

Hiya, thanks for that, cant tweak the setting on my system, perhaps I need a better one. Just done more reading on this, seem that the declining ADX (albeit stilll above 30) might have indicated a possible slowing/end of the downward trend, and so the buy signal generated by the DI- crossing up through the DI+ was a valid one, does that sound right or am I spouting tosh? I guess what I'm saying is - can the trend change from down to up without the ADX ever dipping below 30,

many thanks in advance for any input