Using
the Directional Day Filter for High Percentage Trading
Testing
A theory must be proven before it can have any valid
predictive value.
The initial research on this indicator was done in
January, 2000 using a data base
of 80 randomly selected stocks.
The test program measured trend confirmation across
multiple time frames.
The tests indicated that the Directional Day Filter
trend definition accuracy
rate was 75%.
The graph on the next slide represents a portion of the
stocks tested at the 60
minute time line