The Directional Movement Index (DMI) is actually a collection of three separate indicators combined into one. Directional Movement consists of the Average Directional Index (ADX), Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI). DMI's purpose is to define whether or not there is a trend present. It does not take direction into account at all. The other two indicators (+DI and -DI) are used to complement the ADX. They serve the purpose of determining trend direction. By combining all three, a technical analyst has a way of determining and measuring a trend's strength as well as its direction.
This is the combination of ADX and DMI.
It will tell you about the trend strength.
In easy language Green is for bullish , red is for bearish ,and third line which is of blue and yellow will tell you about the trend strength doesn't matter in which direction. Blue will tell you that trend is getting strength and vice versa for yellow.
Keep an eye at...
ADX is used to quantify trend strength. ADX calculations are based on a moving average of price range expansion over a given period of time. The default setting is 14 bars, although other time periods can be used. ADX can be used on any trading vehicle such as stocks, mutual funds, exchange-traded funds and futures.
ADX is plotted as a single line with values...
Demarker is an indicator similar to DM+ developed by Welles Wilder.
The DM+ (a part of Directional Movement System which includes both
DM+ and DM- indicators) indicator helps determine if a security is
"trending." The differences between the indicators are in the somewhat
different calculation methods.
This "Study" project has been created by request and is used in conjunction with the "Strategy" version.
*** EXPERIMENTAL ***
*** USE AT YOUR OWN RISK ***
Indicator based around Renko Bar Chart emulator (ATR) with direction change used to signal buy/sell trades.
I have generally found that setting the strategy ATR resolution to 3-5x that of the...
A modified DMI, This turns the standard DMI into an Oscillator. The DMI cross signal is the same, but as an OSC you get the added benefits or finding divergences, etc. The added WIlder's Average Line (blue) can help you see if a short term trend is getting less interesting.
Edit of the popular script by @TraderR0BERT
- horizontal colored areas, indication weak/medium/strong trend
- vertical bars, signaling trend/momentum changes
- DI+ vs DI- contraction/expansion histogram (to measure the DI volatility)
Standard DMI indicator, but with easier to understand colours and threshold lines.
I found myself constantly changing the colours every time I added the DMI indicator to a chart, so this indicator should fix that issue.
Green = Plus Directional Indicator ( +DI )
Red = Minus Directional Indicator ( -DI )
Blue = Average Directional Index ( ADX )
There is a nice writeup about a system that uses DMISTO here, which includes decent statistics:
I have not yet done any back testing on the system as a whole myself, but thought the DMISTO was an interesting indicator, so ported it over for those who might want to play...
It is a normal Directional Movement Index, but instead of using lines for +DI and -DI it uses histogram and 4 colors. It also contains an horizontal line (default value @20) to indicate when a trend is confirmed or not.
Average directional index (ADX) with directional movement indicator (DMI). Used to determine the strength and direction of a trend.
Options to change look back length, line-weights, line position and shading of areas.
0-20: Weak or no trend (accumulation/distribution)
20-25: Trend appearing/gaining momentum
20-50: Strong trend
>50: Very strong trend
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...