The level 43 is the previous swing low. It can be good entry level for short trades if price breaks it. MACD falls and confirms down movement. DMI allows open short trades. If ADX rises above 20, we'll have good confirmation of down movement. Profit target is the support level. As for possible long trades, we'll need price reversal from 43. RSI will need to reverse and confirm price bouncing. MACD will have to start rising and confirm up movement. Stop orders should be placed below 43 and profit target orders near the resistance level.
I like your chart and I like your call at $43. Have you ever back-tested your DMI with smoothing at 13 vs 14? I came to the same conclusions you did, but I used 13 to smooth and got the dominant sell cross one day earlier which matched up with a "sell" in the CHOP ZONE turning red. (Note: I use smoothing of 14 for the one and two hour). I will look for CHOP to drift lower, it is almost near the top of the shaded area. This usually tells me the trend will be short in nature and to cover when RSI swings up, or the phase energy starts to rise. Nice work, I enjoyed it! I will publish my version of your fine work soon. Don.
DLavrov
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Thanks Don for your comment! As for DMI 13 - I did not test it. But I don't think that there is difference between 13 and 14. I don't have a target to find super settings for each indicator. If a trading strategy profitable with standart settings, I think it's good a trading strategy.