DMI is simple to interpret. When > - DI, it means the price is trending up. On the other hand, when > , the trend is weak or moving on the downside.
The does not give an indication about the direction but about the strength of the trend.
Typically values of above 25 mean that the trend is steeply moving up or down, based on the and +D positioning. This script aims to capture swings in the DMI, and thus, in the trend of the asset, using a contrarian approach.
Trading on high values of , the strategy tries to spot extremely oversold and overbought conditions. Values of above 45 may suggest that the trend has overextended and is may be about to reverse.
Our backtests suggest that this script performs well for very short-term scalping strategies on low time frames, such as the 1-minute.
The script considers a 0.1% trading fee to make results more realistic to those you can expect from live market conditions. So realistically, live results should be similar to backtested results.
You can plug this script directly into your crypto exchange using TradingView Signals on Coinrule.
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.