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ficult to trade in a sideways market. I like to think of moving averages as giving me a potential signal, a sort of setup if you will. I have seen too many trading systems based on moving averages and then have them optimized on a month-to-month basis. |
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Neal: I notice that you like to use different strengths of trend identifiers, like the directional movement index. |
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Neal: Can you give me a definition of directional movement index? |
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Dick: Sure, Neal. Directional movement measures the strength of the trend, as seen in Figure 3-4. |
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