Ex's DMI Divergence

This indicator I am posting open for everyone to see and use.

This is a modified DMI indicator, It has a DMI+ and DMI- and a 3rd line that is the average divergance/convergance of the two.

This indicator is used to recognize periods of consolidation, directional strength and retracements/reversal

There are some key things to watch for:

-When the Div/Conv line is yellow it means that the DMI+/- average distance is moving closer together(converging)

-When the Div/Conv line is aqua it means that the DMI+/- average distance is moving further apart(diverging)

-One DMI must be below the top threshold and other DMI must be below at least the Top threshold(or bottom if you prefer) to be considered valid

Signs of condolidation/possible reversal/weak strength:

-When the DMI+/- are crossing at any location stay mindful of entries
-If both DMI's are above the threshold there is no clear direction
-When the DMI Div/Conv is yellow it means trend is slowing down and aqua means it is picking up
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.


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