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Dickie,
Glad you ask about the PDI and MDI indicators. They are a part of the
ADX (Average Directional Movement Index) developed by Wells Wilder. It
is an oscillator that fluctuates between 0 and 100. It does not
determine Bullish or Bearish but rather the strength of the current
trend. You will find it in the AFL formulas in the AmiBroker library.
The ADX is actually derived from two other indicators developed by
Wells Wilder. They are the Positive Directional Indicator (+DI or
PDI) and the Negative Directional Indicator (-DI or MDI). These are
built in indicators for AmiBroker. In most activity (TA) buy and sell
signals are generated when one crosses the other or is above or below.
I've been taught for Longs never take a position unless the PDI has
crossed or is above the MDI. The opposite for shorts. We have a
Amibroker users group here in Dallas that consist of AmiBroker, Trade
Station and MetaStock users. We have discussed these indicators at
length and the consensus is to make sure the PDI has crossed or above
theMDI (for longs). So, I have included it in most of the formulas I
use. Hope this clarifies.
Dick H.
--- In amibroker@xxxxxxxxxxxxxxx, "Dickie Paria" <babui@xxxx> wrote:
> Took a quick glance at the code. What exactly is PDI and MDI in the
> Buy/Sell rules ?!!
>
>
> --- In amibroker@xxxxxxxxxxxxxxx, "areehoi" <hoierman@xxxx> wrote:
> > Dickie,
> > Here's another Breakout exporation/scan you may wish to look at that
> > gets fairly good results.
> > /* Breakout based on MetaStock & TC 2000 formulas*/
> > // get 25-day average volume and compare today's volume
> > V25 = MA(V, 25);
> > Cond1=(Close>1.06*L)AND(V>V/V25);
> > Cond2=((HHV(C,25)-LLV(C,25))/MA(H,25)-MA(L,25)*25)*100;
> > Buy = Cond1 AND Cond2 AND (PDI (14)>MDI(14))AND C> Ref(C,-1);
> > Sell = (PDI (14)<MDI(14));
> > Filter = C <30 AND C >2 AND Volume > 100000;
> > Result = WriteIf(Buy,"Buy","Sell");
> > AddTextColumn(Result,"Trade",
> > formatChar,IIf(Buy,colorDarkGreen,colorRed ),
> > IIf(Sell,colorLime,colorPink));
> > AddColumn( Close, "Close", 1.2, IIf( ROC(C, 1 ) >= 0,
> > colorDarkGreen,colorRed ),50 );
> > AddColumn(Ref(Close,-1),"Y-Close",1.2, IIf(
> > ROC(Ref(C,-1),1)>=0,colorDarkGreen, colorRed ),50 );
> > AddColumn( Volume, "Volume", 10.0, IIf( ROC(V, 1 ) >=
> > 0,colorDarkGreen, colorRed ) );
> > AddColumn( ROC( Close, 1 ), "ROC(1)", 1.2, IIf( ROC(C, 1 ) >=
> > 0,colorDarkGreen, colorRed));
> > Buy = ExRem(Buy,Sell);
> > Sell = ExRem(Sell,Buy);
> >
> >
> > --- In amibroker@xxxxxxxxxxxxxxx, "Dickie Paria" <babui@xxxx> wrote:
> > > Buy = LinRegSlope( C, 10 ) < Ref(C, -10 ) *0.6/100 AND
> > > LinRegSlope( C, 10 ) > -Ref( C, -10 ) * 0.3/100 AND Close > Open
> AND
> > > Low >= Ref(High, -1) AND Volume > Ref(Volume, -1);
> > >
> > > Short = LinRegSlope( C, 10 ) < Ref(C, -10 ) *0.6/100 AND
> > > LinRegSlope( C, 10 ) > -Ref( C, -10 ) * 0.3/100 AND Close < Open
> AND
> > > High <= Ref(Low, -1) AND Volume > Ref(Volume, -1);
> > >
> > > **************************************************
> > >
> > > The above is a scan for picking stocks that are making a breakout
> > > from base (long or short). Actually - you can use it for
> intraday,
> > > forex, futures, options whatever. There are some who believe
> that a
> > > breakout signal is more valid if the price base is relatively
> long.
> > > In that case - change the '10' in the code to whatever number you
> > > want - lets say - '120'. If you want to backtest then simply add
> > > a 'Sell' and/or 'Cover' rule of your choice. To get you started -
>
> > > here's a simple sell/cover rule
> > >
> > > Sell = Close < EMA(Close, 5);
> > > Cover = Close > EMA(Close, 5);
> > >
> > > I don't believe a breakout signal by itself is profitable - else,
> > > everybody and their mother would be doing it. But combine with
> your
> > > favorite indicators and you may get a profitable trading
> strategy.
> > > For an idea of how to incorporate a 'price base' in the 'Buy'
> rule
> > > with 2 indicators - look at a previous post of mine
> > > titled 'Revelation Trading System' (posted about a week ago on
> this
> > > forum).
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