January 2013 issue of Technical Analysis of Stocks and Commodities. The article was written by Barbara Star. In the article, Star combined two dmi indicator forex terbaik-known technical indicators to create an innovative new tool that can be used to identify high-probability reversal candidates. AMIBroker code for the DMIS is included at the end of the article.
DI to create an oscillator that reflects both the strength and direction of the recent price trend. Positive values indicate rising prices and negative values signify falling prices. Star then used the resulting DI oscillator as an input into the standard Stochastic indicator, which normally uses the closing prices of the underlying security. A Sample DMISTO Reversal StrategyI used AMIBroker to build a simple test strategy to better understand how DMISTO works and how it could be used to add value.
DMISTO is an oscillator, so I created a weekly reversal strategy to buy when conditions were oversold and sell when the market was overbought. To ensure the DMISTO strategy always traded in the same direction as the long-term trend, I used a moving average filter to eliminate long trades when the closing price was below the long-term moving average and prevent short trades when the closing price was above the moving average. P 500 Index, the Russell 2000 index, and the NASDAQ 100 index from January 2000 to January 2013. The purpose of this exercise was a proof-of-concept only. As a result, I did not withhold an out-of-sample data set. While the example below was based on weekly periods, the DMISTO could be used for daily periods as well.