Using the basic Directional Movement trading system involving plotting the 14-period +DI and the 14-period -DI on top of each other as a multiple 2-in-1 (inner window) indicator, attracted my attention at first, but as it was not a very perfect system, had to do lots of more work to it. Changing the Daily charts to Weekly gave a lot better picture and also trickers' crosses, and out of the blue then got the idee to "just" deduct one from the other. This not knowing at that time, and only later from my ever very first time of using the MS build-in Expert Advisor Tool, then found out that a hyper active version is
already buid-in, eg only as an Expert. The Expert Tool consist of the "Equis - Directional Movement" Expert and makes use of the full DM System(incl. the ever so slow ADX/ADXR), search the Help Index on "Directional movement:").
Thus do note that my "smoothed directional movement system" is not the same as the DMI (of the DMS) function/indicator that is standard build-in Metastock 6.x, as that is taken from Welles Wilder's DMS, but that my SDMI has only simply the recent developed negative Minus Directional Movement(MDI) deducted from the recent developed Possitive Directional Movement(PDI), eg turning it into an oscilating trend folowing and most of the time, leading oscilator.
And an also well explanation on the Thushar Chande's DMI function, his Dynamic Momentum Index(dmi), can be found in the in MSv6x build-in Help also, eg search the Help-Index for "dynamic" and click all of the bold green links.
<How can I get the (HSS+HSR) and (TSS+TSR) levels ?>
The Horizontal Straight Support and Resitance lines and levels are there manually drawn(as was the quickly drawn but not too acuarte trend channel also) and are based on the in time made trading ranges, eg be it 1,2,20,200 or longer multiple weeks/months lasting ranges(zones). Now from a lookback in history, you will find that most ranges borders' multiple made extremes are the same as also for the recently made ranges borders extremes, and also most of the time these ranges extremes borders) will be either found at rounded figures (S&R levels), or stepped up or down will, in points or also relative(%), be of equal steps, eg with steps (in this of +50) of 125-175-225-275.
If these steps then do not fit properly on the chart, then shift/move your levels' lines up or down so that most of the -in time- made extremes will hit the Horizontal line (and these drawn lines are then to become the major Support or major Resistance levels) and future projections or bounces off/on these lines levels (using these steps) can then be made as well, and most of the time, using properly drawn trend channels using the hit extreme High-Low lines(channels borders) and then coinciding with these Horizontal lines, will give you the "perfect" (not always, tho) oportunity to set estimated targets for new major Support or Resistance barriers.
----- Original Message -----
From: Charl Marais <pcmarais@xxxxxxxxxxxxx>
To: A.J. Maas <anthmaas@xxxxxx>
Sent: vrijdag 19 februari 1999 11:29
Subject: Re: Dynamic Zones