[Klemenxina] Improved DMI
Smooth, low-lag, bipolar version of DMI
Improved DMI is the ultra-smooth, low lag version of your classic DMI indicator. With it on your charts, you can throw away both DMI and ADX.
The classic indicator ADX is a smoothed (and lagging) version of the more basic, and more noisy, DMI indicator. DMI itself is composed of two jittery components, DMI.up and DMI.down, combined the following way ...
DMI=| DMI.up - DMI.down | / | DMI.up + DMI.down |
Let's create a new signal, called "Bipolar DMI", and let it be the same as the classic DMI formula above, except that the absolute value is NOT applied. This lets the bipolar DMI be both positive (during upward trends) and negative (during downward trends). The new formula is ...
Bipolar DMI=( DMI.up - DMI.down ) / ( DMI.up + DMI.down )
Script can be used in 3 ways
- divs
- buy/sell when it crosses the 0 line. (This also has an option to color the candles)
- buy when current > last and sell when last > current
Improved DMI is the ultra-smooth, low lag version of your classic DMI indicator. With it on your charts, you can throw away both DMI and ADX.
The classic indicator ADX is a smoothed (and lagging) version of the more basic, and more noisy, DMI indicator. DMI itself is composed of two jittery components, DMI.up and DMI.down, combined the following way ...
DMI=| DMI.up - DMI.down | / | DMI.up + DMI.down |
Let's create a new signal, called "Bipolar DMI", and let it be the same as the classic DMI formula above, except that the absolute value is NOT applied. This lets the bipolar DMI be both positive (during upward trends) and negative (during downward trends). The new formula is ...
Bipolar DMI=( DMI.up - DMI.down ) / ( DMI.up + DMI.down )
Script can be used in 3 ways
- divs
- buy/sell when it crosses the 0 line. (This also has an option to color the candles)
- buy when current > last and sell when last > current
Release Notes:
New coloring
Improved divs and their plot
New look
Improved divs and their plot
New look