HPotter

Dynamic Momentum Index (DMI)

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This indicator plots Dynamic Momentum Index indicator. The Dynamic Momentum
Index ( DMI             ) was developed by Tushar Chande and Stanley Kroll. The indicator
is covered in detail in their book The New Technical Trader.
The DMI             is identical to Welles Wilder`s Relative Strength Index except the
number of periods is variable rather than fixed. The variability of the time
periods used in the DMI             is controlled by the recent volatility of prices.
The more volatile the prices, the more sensitive the DMI             is to price changes.
In other words, the DMI             will use more time periods during quiet markets, and
less during active markets. The maximum time periods the DMI             can reach is 30
and the minimum is 3. This calculation method is similar to the Variable
Moving Average , also developed by Tushar Chande.
The advantage of using a variable length time period when calculating the RSI
is that it overcomes the negative effects of smoothing, which often obscure short-term moves.
The volatility index used in controlling the time periods in the DMI             is based
on a calculation using a five period standard deviation and a ten period average
of the standard deviation.
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////////////////////////////////////////////////////////////
//  Copyright by HPotter v1.0 24/04/2014
// This indicator plots Dynamic Momentum Index indicator. The Dynamic Momentum 
// Index (DMI) was developed by Tushar Chande and Stanley Kroll. The indicator 
// is covered in detail in their book The New Technical Trader.
// The DMI is identical to Welles Wilder`s Relative Strength Index except the 
// number of periods is variable rather than fixed. The variability of the time 
// periods used in the DMI is controlled by the recent volatility of prices. 
// The more volatile the prices, the more sensitive the DMI is to price changes. 
// In other words, the DMI will use more time periods during quiet markets, and 
// less during active markets. The maximum time periods the DMI can reach is 30 
// and the minimum is 3. This calculation method is similar to the Variable 
// Moving Average, also developed by Tushar Chande.
// The advantage of using a variable length time period when calculating the RSI 
// is that it overcomes the negative effects of smoothing, which often obscure short-term moves.
// The volatility index used in controlling the time periods in the DMI is based 
// on a calculation using a five period standard deviation and a ten period average 
// of the standard deviation.
////////////////////////////////////////////////////////////
study(title = "Dynamic Momentum Index (DMI) ")
RSILen = input(14, minval=1)
BuyZone = input(30, minval=1)
SellZone = input(70, minval=1)
UpLimit = input(30, minval=1)
LoLimit = input(5, minval=1)
bbz = hline(0, color=gray, linestyle=dashed)
bz = hline(BuyZone, color=green, linestyle=line)
sz = hline(SellZone, color=red, linestyle=line)
ssz = hline(100, color=gray, linestyle=line)
xStdDev = stdev(close, 5) 
xSMAStdDev = sma(xStdDev, 10)
DTime = round(14 / xSMAStdDev - 0.5)
xDMI = iff(DTime > UpLimit, UpLimit,
            iff(DTime < LoLimit, LoLimit, DTime))
xRSI = rsi(xDMI, RSILen)
pl = plot(xRSI, style=line, linewidth=1, color=blue)
fill(bz, bbz, color=green)
fill(sz, ssz, color=red)
Looks Good!
Reply
HPotter PRO QuantitativeExhaustion
2 years ago
Thank you
Reply
Shuuro
a year ago
Just tried this DMI on EURUSD (different time frames). Appears to have stopped calculating and displaying the DMI data. I note the last comment on this topic was 15 mths ago. So has DMI been removed?
Reply
HPotter PRO Shuuro
a year ago
What do you mean? Please give more details.
Reply
Shuuro HPotter
a year ago
For example, see attached. MACD and CCI working fine, but not DMI.
Reply
Shuuro HPotter
a year ago
Adding chart...not done this before so hope this works
Reply
Shuuro HPotter
a year ago
see if this works
snapshot
Reply
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