[dpaterso]

Hello,

Thanks for the input. We're going to have to agree to disagree here OR get some more input from others.

This is MY logic:

Page 40 (last paragraph): '... and that you only trade the top five or six commodities that are high on the ADX Scale. ...'.

Page 44 (bottom half of the page): 'This is all the information we need to follow the Directional Movement Index.'. The NEXT paragraph states (after mentioning the ADXR in this chapter FOR THE VERY FIRST TIME): 'These three entities pertain to the COMMODITY SELECTION INDEX (CS) ...'.

Having noted the above, however, the point you make about the paragraph on Page 48 that starts: 'Another interesting thing is ...' is EXACTLY WHY this section has been bothering me i.e. there have been MANY times in the past couple of months when ADX has been BELOW both +DI AND -DI AND YET the ADXR has been above (sometimes WELL above 25). Now you COULD say to yourself: 'Well OK I'm in a trade and ADX has now dropped below both +DI and -DI so I'd better take profit or exit'. THAT I COULD understand. However: what if (and this HAS happened in the past) you've just been given a valid entry signal by let's say the SIS AND ADXR is greater than 25 so you 'go for it' BUT the ADX is below both +DI and -DI!!! See my problem with this??? And it these tiny 'contradictions' (well I believe them to be contradictions anyway) that make understanding this section more difficult than necessary.

Also (as I mentioned previously)L on Page 46 we're talking about ADX for most of the time then all of a sudden we're talking about ADXR and then on the next page we're back to ADX until JUST before the details of the 'DIRECTIONAL MOVEMENT SYSTEM' are given i.e. we're then back to talking about ADXR and the CSI etc. etc. etc.

One other reason I started to question whether or not I was on the 'right track' was this: take a look at a chart where you can cleary see that the pair is trading in a range. AUD/NZD funnily enough is a 'primo' example of a pair that has been, and is, trading in a range. Now take a look at the value of ADX and then take a look at the value of ADXR. At NO POINT has the value of ADXR dropped below 25 (and has been quite high at some points while this pair has been trading in this range) whereas ADX has been below 25 (even below 20 on occasion) pretty much since the pair started trading in this range. Now this of course begs the question: do I use ADX and / or ADXR to determine whether or not I should be looking to use the SIS or VS or DMS or the RTS or TBPS??? Right now I'd be inclined to use either the RTS or the TBPS on this pair and NOT something like the SIS. That's MY logic (now)!!!

Now just to 'throw a spanner in the works': CONVERSLY if you look at AUD/JPY right now I'd say it's ALSO pretty much trading in a tight range at the moment BUT take a look at ADX and ADXR on THIS pair right now i.e. ADX is ABOVE 25 and ADXR is BELOW 25!!!

I just know this: in constructing my ADX ADXR Daily Work Sheet countless times I've often noticed that I've missed LOADS of trades because I was trying to be 'sure' and use BOTH ADX AND ADXR together 'just in case I was wrong' and you can't do this (obviously). If you wait for BOTH ADX AND ADXR to have values of less than 25 then you're certainly going to miss some 'stellar' RTS or TBPS trades and sometimes you will find that if you're waiting for BOTH ADX AND ADXR to have values greater than 25 then you're also going to miss some 'stellar' SIS, VS (although I'm not sure that any of this has an effect on the VS), or DMS trades.

So: which is it??? THAT is 'the question' my friends!!!

From what I can see NOW and after reading this section AGAIN for the one thousandth time (probably) MY money is on ADX ALONE UNLESS I'm going to incorporate the CSI into my trading to get the 'best bang for buck'!!!