AW: Relative Strenght Index vs. Dynamic Momentum Index

["Andreas Grau" <agrau@xxxxxxxxx>]

Glen,

thanks for pointing to TASC, I'll check to see if the $3 are still in
my budget after the christmas spendings :-)

Last night I experimented with applying DMI to the StochRSI and Dynamic
Zones. The results look promising: Especially on high volatile stocks
like those internet beasts, the signals come earlier by one or two days.
With stocks which easily jump 8 to 20 % per day, this gives a significant
change in result - unfortunately as well as in the wrong direction :-)

Cheers,

Andreas


For those who may want to play with this, here are my translations:

StochDMI:
N := Input("Time Periods", 3, 220, 28);
(Sum(DMI(CLOSE)-LLV(DMI(CLOSE),N),3)/
Sum(HHV(DMI(CLOSE),N)-LLV(DMI(CLOSE),N),3))*100

Dynamic Zones (DMI-Version):
PB:=Input("Enter Periods for BUY",1,100,70);
PS:=Input("Enter Periods for SELL",1,100,70);

UpZone:=Mov(DMI(CLOSE),PS,S)+(1.3185 *Stdev(DMI(CLOSE),PS));
LwZone:=Mov(DMI(CLOSE),PB,S)-(1.3185 *Stdev(DMI(CLOSE),PB));
UpZone;
LwZone;


> -----Ursprüngliche Nachricht-----
> Von: owner-metastock@xxxxxxxxxxxxx
> [mailto:owner-metastock@xxxxxxxxxxxxx]Im Auftrag von Glen Wallace
> Gesendet am: Sonntag, 28. November 1999 03:30
> An: MetaStock listserver
> Betreff: Re: Relative Strenght Index vs. Dynamic Momentum Index
>
> Andreas:
>
> I'm not the resident momentum indicator expert, but I think it is
> certainly
> worthy of study.  The May 1993 Technical Analysis of Stocks and
> Commodities
> had an article on RSI and DMI by the creators of the DMI, Chande
> and Kroll.
> You can download a reprint for US$3 from TASC's website.
>
> Regards.
>
>
> ----- Original Message -----
> From: Andreas Grau <agrau@xxxxxxxxx>
> To: <metastock@xxxxxxxxxxxxx>
> Sent: November 27, 1999 11:20
> Subject: Relative Strenght Index vs. Dynamic Momentum Index
>
> > Hello World \n
> >
> > From the Metastock help file:
> >
> > "The DMI is identical to Welles Wilder's RSI except the number of
> > periods is variable rather than fixed. The variability of the time
> > periods used in the DMI is controlled by the recent volatility
> of prices."
> >
> > This variability makes perfect sense to me. But what do the experts say?
> >
> > Any comments would be highly appreciated.
> >
> > Greetings,
> >
> > Andreas
> >
> > ---
> > Andreas Grau  aka agrau@xxxxxxxxx
> > Telefon 089-27349990
> >
> > Reality is an illusion --  perception is what counts
>
>