This is a DMI+ADX with colours based on the slope of the plot, with Fibonacci levels.
It makes it easier to see what is happening with a quick glance. I have also added Fib levels as an experiment, but when doing some backtesting they seem to line up reasonably well with past price movements. They can be used to see possible reversal areas, or as thresholds to gauge how strong the trend is. Fibs play a big role in the markets for some reason and I have seen them applied to more than PA with good results, but I know it will not fit into every strategy. The more standard settings for the thresholds are 25,50,75 and you can change them to those if you want, but I suggest taking a look at the Fib version first.
The ADX smoothing is set up for Crypto trading on Mid to High TFs. If you are trading sub 1hour charts I would suggest changing it to 3-4. If you are trading traditional markets it is probably a good idea to have it set somewhere between 6-14 (default is 14), but I am not a professional so please do your own testing and research.
Colours:
ADX going up = Green ADX going down = Red
DMI+ going up = Bright Aqua DMI+ going down = Turquoise / Dark Aqua
DMI- going up = Bright Purple DMI- going down = Dark Purple
(if someone finds a better colour system please let me know as it is tricky to get it looking good without being unicorn puke)
This is my first script and I am just beginning to learn PineScript so somethings may have been done in an unorthodox manner but I believe everything is working as it should, however, I am happy to make any improvements. I'm interested in what people think of the Fib levels on this indicator and would love to hear people opinions and results in the comments.
Release Notes
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I have added an EMA of the ADX. My idea was to use it as a smoother ADX, however it also appears to have potential signals on cross overs (pointed out on chart). Please let me know in the comments if it is an useful addition to the tool and any requests too.
Great DMI indicator man, really appreciate, the best one ive looked on the public library. Hope for that open source one
MrBetonBlocks
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@lemongrab16, Thanks for the nice words. Glad someone likes it. I've been working really hard (learning as I go) on the new version. Its got lots of what I think are useful features like easy to set alerts. Multiple ADX plots so you can have them at different smoothness, easy to set alerts and some more. I'm just waiting for the last day of my TV free trial so I can buy a subscription and then it will be uploaded. 5 Days left on it. There's also a strategy to go with it but its not very optimal. Enters when ADX crosses threshold and exits when turns around. Gives a good idea of what ADX settings give you the best results, but for actual trades it needs to be combined with other things.
lemongrab16
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@MrBetonStonks, that looks even cooler, but ya, I was looking for continuation confirmations, i might say, for exits, after i got my entry by other methods.
MrBetonBlocks
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I will be uploading an open source version of this in the next few weeks. Just want to tidy up my code before I do so.