GR-DMI (Directional Movement Indicator with better colours)
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 )
Comments and suggestions are most welcome.
I'm available for hire, to create custom indicators or to work on more complex software projects.
From (www.investopedia.com...mi-forex-trading.asp):
The directional movement index, or DMI, is a momentum indicator use to determine the existence of a trend and trend strength, and it can be utilized in forex trading as well as in stock or futures trading. It may even prove a more useful indicator in forex trading, as momentum indicators are popular with forex traders. The DMI calculates a moving average of range expansion over a given time period and is shown by two lines: the positive directional movement indicator, or +DMI , and the negative directional movement indicator, or -DMI .
The two DMI lines show the respective strengths of buying and selling pressure in a market. As with the popular Average Directional Index , or ADX , indicator, the use of both lines provides traders with the ability to assess buying and selling strength, indicating which is stronger, and also giving a relative indication of the amount of strength contained in a price movement by means of a scale going from zero to 100. A strong trend is revealed by a reading above 25 that occurs following one of the DMI lines crossing over above the other.
In a forex trading strategy, traders might make use of the DMI as a supporting, or confirming, indicator combined with a strategy primarily focused on price action and moving averages. It could also be used along with another momentum or range indicator to provide additional confirmation and help in choosing a good trade entry point. Once a trader's overall analysis suggests taking a position in a market, a possible trade entry point is provided when there is a crossover of the DMI lines or when, as mentioned above, the establishment of a firm trend is indicated by a DMI reading over 25.
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 )
Comments and suggestions are most welcome.
I'm available for hire, to create custom indicators or to work on more complex software projects.
From (www.investopedia.com...mi-forex-trading.asp):
The directional movement index, or DMI, is a momentum indicator use to determine the existence of a trend and trend strength, and it can be utilized in forex trading as well as in stock or futures trading. It may even prove a more useful indicator in forex trading, as momentum indicators are popular with forex traders. The DMI calculates a moving average of range expansion over a given time period and is shown by two lines: the positive directional movement indicator, or +DMI , and the negative directional movement indicator, or -DMI .
The two DMI lines show the respective strengths of buying and selling pressure in a market. As with the popular Average Directional Index , or ADX , indicator, the use of both lines provides traders with the ability to assess buying and selling strength, indicating which is stronger, and also giving a relative indication of the amount of strength contained in a price movement by means of a scale going from zero to 100. A strong trend is revealed by a reading above 25 that occurs following one of the DMI lines crossing over above the other.
In a forex trading strategy, traders might make use of the DMI as a supporting, or confirming, indicator combined with a strategy primarily focused on price action and moving averages. It could also be used along with another momentum or range indicator to provide additional confirmation and help in choosing a good trade entry point. Once a trader's overall analysis suggests taking a position in a market, a possible trade entry point is provided when there is a crossover of the DMI lines or when, as mentioned above, the establishment of a firm trend is indicated by a DMI reading over 25.