DEMA Adaptive DMI PLEASE Read the following, knowing what an indicator does at its core before adding it into a system is pivotal. The core concepts can allow you to include it in a logical and sound manner. Conceptual Foundation and Innovation The DEMA Adaptive DMI blends the Double Exponential Moving Average (DEMA) with the Directional Movement Index...
A common problem experienced by short term traders using DMI/ADX is that the session breaks results in carry-over effects from the prior session. For example, a large gap up would result in a positive DMI, even though momentum is clearly negative. Note the extremely different results in the morning session, when the gap is reversed. The DMI-FLEX algoritm...
This indicator will time Breakouts. DMI+ (DMI Plus) = Blue = Buying Pressure. DMI- (DMI Minus) = Pink = Selling Pressure. ADX = Overall strength of a Trend. White = Trend is strong and gaining momentum, Gray = Trend is Weakening. Can apply same logic for Divergences on DMI+ and DMI- lines.