HammondB3

B3 Directional Trend Index

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.
Open-source script

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.

Want to use this script on a chart?
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Comments

this is a wonderful divergence detector - thanks!
+3 Reply
HammondB3 Hociemocie
@Hociemocie, you're welcome. I am developing some strategies based on some of my indicators, to release in the next week or so. DTI included!
+1 Reply
rngunkina HammondB3
@HammondB3, Is there strategy based on B3 Directional Trend Index?
Reply
HammondB3 rngunkina
@rngunkina, not in pinescript that I know of. Literature yes, I first learned of it in ROBERT KRAUSZ’S Fibonacci Trader Volume 2 Issue 1. You use this indicator in conjunction with level indicators like Fib-retracements and such. If you set the inputs low you can look for the turn of the indicator at your levels.
Reply
today it is impossible use it.
+2 Reply
I was looking for this indicator for awhile. Thanks
+1 Reply
This is very wonderful indicator
+1 Reply
HammondB3 Lijarani123
@Lijarani123, You can read more about it in ROBERT KRAUSZ’S Fibonacci Trader Volume 2 Issue 1. It has a way of A. calling out divergence, and B. showing turns at your levels (which may or may not be Fibs) for higher probability entries. Glad you like it, I simply painted it pretty, not my math :)
+1 Reply
Great indicator!
+1 Reply
Thanks @amolpatilaaa5!

@gianfranco60, I hear ya, and any day when the trends aren't following through (developing a range), this is when DTI or momentum indicators in general suffer. A good second indicator is ADX, as it will tell you when the energy of the market is low.
+1 Reply