Zettt's Directional Movement Index

2021년 1월 7일

This is a modified version of the standard DMI/ADX indicator by Welles Wilder. It makes the most important parts of the standard version more prominent to help traders better identify emerging trends, and judge markets.

• First of all the dominant Direction Index, +DI or -DI (green and red), is emphasized with a different color, but only if they break the ADX Weak Threshold.
  
• There is a setting for "ADX Weak Threshold". This is the general trend strength meter. It determines at which level one of the Directional Indexes are emphasized, and it serves as threshold level at which the "Long ADX" is emphasized too.
  
• Trader should think of Long ADX (yellow) as an ability to judge higher timeframe trend, on lower timeframes, which is determined by the ADX Multiplier. For example, while viewing a 4h chart, and an ADX Multiplier of 4, Long ADX acts like an ADX on the 12h (4h * 4). Furthermore Long ADX is also only emphasized in color once it breaches the ADX Weak Threshold. Therefore helping to give further confluence, e.g. pyramiding into a bigger-sized trade when a higher timeframe trend is strengthening.
  
• Last but not least the (normal) ADX (purple) color is emphasized when its value is strengthening. More prominent color = strengthening trend.
  
• Additional this DMI provides 4 "trend strength zones". These help to easier judge trend exhaustion, and spot potential reversals earlier.
  

The standard DMI setting is changed from 14 to 6 in this version. Reducing this setting also requires reducing the ADX Multiplier.

2021년 4월 3일

릴리즈 노트

New in this version:

* This DMI now shows when the ADX crosses a signal line, potentially indicating a strengthening trend. A shape is plotted on top of the indicator.
* Typos.

2021년 4월 3일

릴리즈 노트

Minor bug fix.

2021년 6월 5일

릴리즈 노트

Merging my (until now private) "TF", or "Trend Following", indicator with the publicly available DMI. In essence, TF is a strategy I've developed about a year ago, when I was just starting out programming my own indicators and strategies. The strategy uses a special condition for the DMI to determine long and short signals using the DMI and the MACD. It is supposed to let traders know when a market is leaving chop, and maybe entering a trend. TF could work without the MACD, but I like to keep it as a trend confirmation signal. The settings are 3/4th of the original settings. In my experience it doesn't make sense to mess with these. 9, 18, 4 is aggressive enough to get you into trends early enough, but still lenient enough to eliminate most false signals. Traders can toggle the visibility of TF, but who wants that? You can follow my trading log on Telegram, or Twitter. I'm not allowed to link them here, but they are easy to find. You will find more information about it there, or just ask, and I might have an answer.