Many investor’s believe that an investor should go long when the 14 bar plus DI crosses the 14 bar minus DI. They also believed that as a rule of thumb, the system would be profitable on financial instruments that had ADXR values over 25. (This assumes a trend following system; otherwise, he recommends using an ADXR value below 20.) Investigator lets you test these theories. Investigator also allows you to combine the Directional Movement system testing conditions with bar patterns and other indicator testing conditions.
First, select the time period and enter the number of bars and the number of bars ago value that you want to use for testing.
You now have four choices which you can choose to use individually or combined.
If you select the +DI > -DI option, Investigator will check and see if the above entered number of bars value’s Plus DI is greater than the above entered number of bars value’s Minus DI.
If you select the -DI > +DI option, Investigator will check and see if the above entered number of bars value’s Minus DI is greater than the above entered number of bars value’s Plus DI.
If you select the ADX > option, Investigator will check and see if the current bar’s ADX value is greater than the value you enter in the ADX edit box.
If you select the ADX < option, Investigator will check and see if the current bar’s ADX value is less than the value you enter in the ADX edit box.
If you select the ADXR > option, Investigator will check and see if the current bar’s ADXR value is greater than the value you enter in the ADXR edit box.
If you select the ADXR < option, Investigator will check and see if the current bar’s ADXR value is less than the value you enter in the ADXR edit box.