Ask Colin

Do you use the Directional Movement Indicator?

I don't use DMI. It is intended to tell you when a market is trending. As you say, it tends to be late, because there has to be a trend before it can detect it. Therefore it works best if the trend is sustained for some time, which is not that common.

I prefer to define the trend directly from the price action, rather than using an indicator.

Keyword: