Here we provide a bunch of charts, comparing a Buy-and-Hold strategy versus the Volume-weighted Directional Movement Indicator, or VDX.

With VDX we do this, starting with a $1,000 in our pocket:

1. At the end of each week we note the Open, High, Low and Closing prices for that week.
2. Using the average of these four prices, (Open+High+Low+Close)/4, we calculate the 4-week VDX.
3. If the VDX rises above +30% we buy the stock at next week's Opening price.
4. If the VDX drops below -30% we sell the stock at next week's Opening price and stick the money into money market, at 2% per year.

Here are some comparisons, for a period ending in June, 2001: