| Name: |
FXS-DMI |
| Characteristic: |
Trend Direction |
| Parameter Defaults: |
Length |
14 |
| |
Trend Level |
25 |
| Plots: |
ADX |
| |
DMI+ |
| |
DMI- |
FXS-Trend
Oscillator is a price direction indicator. It produces one line that
broadly indicates whether price is rising or falling.
Usage
The above chart shows the same price action in CHFJPY. The Swing
High and Swing Low indicators (strength of 3) have been applied to the
Trend Oscillator. Only when the Trend Oscillator penetrates the
previous Swing High will any buy signals be traded and only when the
Trend Oscillator penetrates a Swing Low will a sell signal be traded.
The result filters the signals to avoid some of the minor whipsaws.
This is by no means the only filter that could be applied, but does point
the way in which indicators may be used in an integrated manner to
provide more powerful signals.
Legal disclaimer and risk disclosure
Pro Commentary, FX-Strategy, FX-Strategy Pro Charts, and any related products or services, are analytical tools only and are not intended to replace individual research. The information provided here should not be relied on as a substitute for extensive independent research before making your trading/investment decisions. FX-Strategy is merely providing this service for your general information. No representation is being made that any software or training will guarantee profits or not result in losses from trading. The views are not necessarily those of FX-Strategy, its owners, officers, agents or employees. In addition any projections or views of the market provided may not prove to be accurate. FX-Strategy will not be responsible for any losses incurred on investments made by readers and clients as a result of any information contained in this service. Be sure to closely read and understand the risks of foreign currency trading as described on the FX-Strategy website.
