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Directional Movement Index (DMI)

Strength & Directional Movement [CP]This my version of the ADX & DI indicator, fixed the code, ported to Pine Script v3 and loaded up with filters for your smoothing pleasure. I have some info below on how to read this indicator, be sure to take a look! Wilder’s DMI (ADX) consists of three indicators that measure a trend’s strength and direction. Three lines compose the Direction Movement Index (DMI): ADX (black line), DI+ (green line) and DI- (red line). The Average Directional Index (ADX) line shows the strength of the trend. The higher the ADX value, the stronger the trend. According to Wilder, a trend is present when the ADX is above 25. DMI values range between zero and 100. The Positive Directional Indicator (+DI) and Negative Directional Indicator (-DI) show the current price direction. When the DI+ is above DI-, current price momentum is up. When the DI- is above DI+, current price momentum is down. DI Crossovers: Traders could enter a long position when the DI+ line crosses above the DI- line and set a stop-loss order under the current day’s low. When the DI- line crosses above the DI+ line, traders could place a short position with a stop above the high of the current day. Irrespective of whether the trader takes a long or short position, the ADX should be over 25 when the crossover occurs to confirm the trend’s strength. When the ADX is below 20, traders should use trading strategies that exploit range bound conditions DI Contractions and Expansions: The DI+ and DI- line move away from each other when price volatility increases and converge toward each other when volatility decreases. Short-term traders could enter trades when the two lines move apart to take advantage of increasing volatility. Swing traders might accumulate into a position when the lines contact in anticipation of a breakout. The +DI generally moves in sync with price, which means the +DI rises when price rises, and it falls when price falls. It is important to note that the -DI behaves in the opposite manner and moves counter-directional to price. The -DI rises when price falls, and it falls when the price rises. This takes a little getting used to. Just remember that the strength of a price move up or down is always recorded by a peak in the respective DMI line. Reading directional signals is easy. When the +DI is dominant and rising, price direction is up. When the -DI is dominant and rising, price direction is down. But the strength of price must also be considered. DI strength ranges from a low of 0 to a high of 100. The higher the DI value, the stronger the prices swing. DI values over 25 mean price is directionally strong. DI values under 25 mean price is directionally weak.
Pine Script® indicator
by Coinpocalypse
1
Contender 2 Directional movement indicator for assessing price direction and strength. DMI tells you when to be long or short, differentiating between strong &weak trends. DMI works on all time frames and applicable to any asset. DMI is a moving average of range expansion over an input period. The positive directional movement indicator ( +DMI ) measures how strongly price moves upward; the negative directional movement indicator ( -DMI ) measures how strongly price moves downward. The two lines reflect the respective strength of the bulls versus the bears. Which DMI lines is on top is the dominant DMI. The dominant DMI is stronger and more likely to predict the direction of price. For the buyers and sellers to change dominance, the lines must cross over. Added feature is Bollinger Bands to moderate signals.
Pine Script® strategy
by epicau
Contender 1Directional movement indicator for assessing price direction and strength. DMI tells you when to be long or short, differentiating between strong &weak trends. DMI works on all time frames and applicable to any asset. DMI is a moving average of range expansion over an input period. The positive directional movement indicator ( +DMI ) measures how strongly price moves upward; the negative directional movement indicator ( -DMI ) measures how strongly price moves downward. The two lines reflect the respective strength of the bulls versus the bears. Which DMI lines is on top is the dominant DMI. The dominant DMI is stronger and more likely to predict the direction of price. For the buyers and sellers to change dominance, the lines must cross over. Added feature is Bollinger Bands to moderate signals.
Pine Script® strategy
by epicau
DMIBBDirectional movement indicator for assessing price direction and strength. DMI tells you when to be long or short, differentiatING between strong &weak trends. DMI works on all time frames and applicable to any asset. DMI is a moving average of range expansion over an input period. The positive directional movement indicator (+DMI) measures how strongly price moves upward; the negative directional movement indicator (-DMI) measures how strongly price moves downward. The two lines reflect the respective strength of the bulls versus the bears. Which DMI lines is on top is the dominant DMI. The dominant DMI is stronger and more likely to predict the direction of price. For the buyers and sellers to change dominance, the lines must cross over. Added feature is Bollinger Bands to moderate signals.
Pine Script® indicator
by epicau
DMI strategy(lirshah)The Directional Movement Index indicator, or DMI, is a trend trading indicator developed by Welles Wilder, which also invented one of the most popular overbought and oversold indicator " RSI indicator". DMI is based on a scale from 0 to 100 that identifies the price direction and the strength of the trend. The DMI indicator is composed of three lines: ADX, which is non-directional, so it will quantify the strength of the trend regardless if it’s bullish or bearish.The ADX line is derived from the relationship of the DMI+ and DMI- lines DMI+, which measures the strength of the upward price movement. DMI-, which measures the strength of the downward price movement. this strategy gives signals according to movements of these three lines and has the best result on xrpusd M15 chart.
Pine Script® strategy
by Lirshah
4
Directional Index OscillatorDirectional Index Oscillator (DIOSC) is +DI and -DI diferrence oscillator. You can use this indicator 2 different way. 1. Cross over and cross under with DIOSC and its MA. 2. Price and indicator divergences. BUY Signal: If DIOSC is red (and relatively big at negative side) and cross over the MA line. Or DIOSC have a positive divergence with price lows. SELL Signal: If DIOSC is green (and relatively big at positive side) and cross under the MA line. Or DIOSC have a negative divergence with price highs.
Pine Script® indicator
by aydinkn
1