wilder's directional movement system

[darth trader]

I have been testing the dms described by wilder.
Metastock is well suited to this as it has inbuilt functions for the commodity selection index, adxr (average directional movement and the plus/minus movement indicators.

At first sight the system appears to be quite reliable.

Does anybody have any experience of using it?

Darth.

 

[titus-uk]

Don't have that much experience of using ADX yet, as I had never previously looked at it that much. However, tonight I have read a little about it, and tested it on a variety of charts, and I must say i like the look of it! It seems to give good entry points - though on occassions a little late. However, I think it may prove very useful for longs in the medium term time frame.

All the best,
Mark

 

[Effkay]

Does anyone know where I can get the calculation for this?

 

[gbr128]

New Concepts in Technical Trading Systems by Welles Wilder Jnr. is a good place to start. Have also seen a summary on the net so Google may be able to turn something up.

Have been thinking ogf using ADX in a trend-following system I'm planning (i.e. when to be in or out of the market depending on trend-strength) but need more time build the backtesting system.

 

[knorrie]

You'll get this and whole load of other indicator calculations here:

http://www.incrediblecharts.com/technical/dms_construction.htm

KenN

 

[marvel]

Adxr is good for identifying new trends coming out of rangebound periods - but takes forever to signal a new trend that results from a "spike top" / bottom, in some cases it takes months to turn up.

 

[options]

As ever, it all depends on your settings and time frame.