1. Period: To specify the number of days used in calculating DMI,
simply click on the box, highlight the current number and type in a new
value. Be sure to click on "OK" to save your changes.
2. Style & Color: The DMI Lines can be displayed as solid, dashed,
or dotted. Click on the drop down menu to specify the type of line style
desired. Click on the box next to the drop down menu to change the color
of the line.
3. Directional Indicator: The two methods available in displaying
the DMI indicator are Averaged Directional Index (ADX) and the
Directional Index (DX). Click on the radio button in front of the method
to select. For more information on the different values, refer to the
article above.
4. Use Relative Scale: When choosing this option, the 100% location
is changed to the highest point value in the DMI Indicator.
5. The drop-down menu for Show Buy/Sell Arrows allows you to select
either "Always Show Arrows" or "Only When Indicator is Visible" to view
the buy/sell signals or "Never Show Arrows" to never see the AD arrows.
6. Extreme Point Validation: This filter delays the buy/sell arrows
at least a day by requiring that the market move higher or lower than
the high or low on the day the DM+/DM- cross over happened. If a new
higher high or lower or low is not obtained before the next DM+/- cross
over, the buy/sell arrow is suppressed completely for that previous
period. The filter does not require the use of DX/ADX although it does
stack with the other filters if they are used.
ADX Trend Strength [ number ]: This filter is simple to
understand. The directional index (DX) or averaged directional index (ADX)
line must be above the target number before a DM+/- cross will give a
buy/sell arrow. The theory is that the DX/ADX lines indicate trend
strength (but not trend direction) and if it is below 20 there is
practically no trend. Values above 40 indicate a strong trend. Different
articles would use values between 20 and 40 as targets to look for. The
directional index indicator line must be on for this rule to be
available.
Turning Point Validation: This filter is also simple to
understand. The directional index line (DX or ADX) must be above the
point where DM+/- crossed. This is like a variable trend strength
filter. The directional index can indicate any trend strengths as long
as the trend strength is greater than the value of the DM+/- crossing
point. This indicator also requires that the directional index indicator
line be on.
7. To display the indicator in the chart window, click the check
box.
8. Ruler Bar: See the Ruler Bar section at the end of this
chapter.
9. Preview Window: This window allows you to make changes and
preview them before saving them.
10. Click on "Apply to Active Charts" if you would like to see
your selected settings on all the charts you have open. Click on
"Restore Factory Defaults" if you would like to restore original
software settings.
11. Help: Information from the manual has been integrated into the
software. When clicking on the "Help" button you will get specific
documentation based on the location of the button. You may also press F1
on your keyboard to access this information.
