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Actually the dmi would not be a measurement tool for this but, it would have
some lag due to the look back period. That's my only problem with the ADX
and Dmi + - functions. While there must be some lag present to make a
historical judgment, it can be quickly dropped off as an input once
established grounds are obtained. What? well through massive optimization
(know bad word) you can determine with what percentage of probability what
lookback period of say the Dmi works best for identifying Chop or Trend.
Writing that code alone can take a while to do. Then having a big set of
possible parameters take not the best, but do this. Take the lower 25% and
the upper 75% of the readings and let that become the high and low mean of
an Adaptive input. That Adaptive input would then scale down to the lower
15% to lower 35% and likewise do so with the upper. So if 75% is the mean
the upper Adaptive input would range from upper 65% to upper 85%. These
upper and lower Adaptive inputs than can be adjusted by current volatility
levels. Making the whole thing have only one bar lag in any time frame.
mb
> > > How would I go about calculating the exact trending and chopping
range for each market (or just one market)? How do you define a trending or
chopping range? I think the Plus DI and Minus DI components of the ADX can
be very helpful in trying to quantify and compare choppiness of markets.
>
> Assume that you have two markets that are moving upward at about the same
slope. One is rising very smoothly and the other is very choppy. The Minus
DI of the smooth market will be low (20 or less) and the Minus DI of the
choppy market will be high (30 or more).
>
> I think there is some valuable info contained in the DI as an indicator of
choppiness. Haven't had a chance to explore it thoroughly.
>
> Chuck
>
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