World Surveillance Group Inc (fka WSGI)

[lowtrade]

fashionman
1st you should understand, this indicator is known as a long term indicator, to show trending in a stock PPs. I use it short, to buy or sell. If you go back in my posts you can find how I use it, no idea why it works so well, as I use it, but it does.

Now the DMI+ indicates the stocks PPs is going up and the DMI-down. When the + crosses the -, you buy, simple. When the - crosses the +, you sell. the larger the distance between the two the more volitility.

Now the hard part, the ADX line. It is the average of the DMI+&DMI-, It shows trending and expected strength of the trend, measured from zero to 100.

Lets see, how do I start;
1. When ADX is below 20 you should not own and when it is above 40 it's ok to own.
2. When the ADX is going up the PPs is TRENDING up, (good), the longer the ADX goes up the stronger the up trend. The reverse for down.
3. So at any given time you can have many indications at once from this one line.( I am going to cover positive movement, but it goes both ways)
3 a. If the ADX is below 20 moving up towards the 40, (good)
3 a 1. If it is between 20 & 40 going up (better)
3 a 2. If it above 40 going up (best) should have bought before this.
3 b. If that movement is happening over a longer time span, that is better, as the trend will continue longer.(show movement to be a climb up, not run up)
3 c. ON sharp upward movements from below 20, will show a Strong run or the lower the ADX to zero you start the move up; the more change can be expectd. Same for long climbs.

Many more combo's but I stop there, because that covers the basics. Now over lay the ADX on the DMI+/DMI-.

The best thing to see is the ADX as low as possible, going up to the DMI- and continuing up through th DMI+. long.

Any time the ADX cross either DMI lines from the bottom (good) if it happens just after the DMI+ crossed the DMI- this is the optimum point to make sure you own!!

Another very good thing to see is the DMI+ has crossed the DMI- and is continuing to go up, while the ADX it already above 40 and it crosses the DMI up there and turn up with the DMI+ climb. This would be what you want to see if you own, because it shows a continuing climb up!

I'll try to find some time this weekend to put a visual together and post it.

Success.