HammondB3

B3 Directional Trend Index

HammondB3 Updated   
B3 Directional Trend Index ~ All about the trend! William Blau is the designer of this gem, and IMHO it is the best trend finder of all the lagging indicators out there I have tested. It is important to pay attention to the slope and thickness of the line, and its relationship to zero. A reversion to the zero may look momentous, but in fact it could reverse when it reaches mean, only to turn back around. You can see this in March and April of this silver futures daily chart . Makes for a great instrument on anything you consider trendy, like crude oil for example. The default user inputs are set to my liking, as I find them to be great on all charts and resolutions. You may read around to find more about this on the internet, or its mentioned in Krausz's work. Also, imprtant to remember when no trend, trend finders like this sufffer, so be wise as to what market condition you are in. Rangy and within Range = no, On the Move = yes.
Release Notes: MAJOR UPDATE TO B3 DTI
  • First and foremost, the code was upgraded to Pinescript v4 from v2.
  • Default Slow Input Set @ 10 - range of 8-14 tested better on the futures I trade (was originally defval=20). The rest of the DTI inputs remain unchanged.
  • Gradient Colorizations Added - Completely user controlled in UI
  • Gradient Bar-Coloring added to match the DTI Signal Line
  • Gradients follow the deviation of DTI from zero (deeper color = more deviation).
  • The lines/bars fade when DTI is close to 0 often signaling chop (unless an obvious trend is passing zero), and the deeper colored lines/bars are places to look for strong trends and hard reversals.

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