This DMI I modified to see the trend more clearly, and the ADX line changes according to the trend force, which is perfectly configurable, the configuration I left my default configuration, in case you want to modify it because you see the trend in different values, feel free, and basically the columns are the average of DI and also indicate the trend more clearly.
Esse DMI eu modifiquei para ver a tendência com maior clareza, e a linha do ADX ela muda de acordo com a força de tendência, a qual é perfeitamente configurável, a configuração eu deixei a minha configuração padrão, caso você queira modificar porque você vê a tendência em valores diferentes, sinta-se livre, e basicamente as colunas são a média de DI e indicam também com mais clareza a tendência.
Sürüm Notları
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due to a mathematical error that I had not noticed, the DIA formula was completely wrong, it was dividing DI- by 2 instead of the entire equation, which could lead to an error analysis, sorry for that.
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devido a um erro matemático que eu não tinha notado, a formula do DIA estava completamente errada, ela estava dividindo DI- por 2 ao invés da equação inteira, podendo levar uma análise ao erro, desculpa por isso
Special thanks to RedKTrader
Sürüm Notları
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Code Update
removed two variables that were used only once, and their values assigned directly in the plot() function
This is one of the best designed indicators I've found on TV hope that you continue to make more!
Marqx
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@gaiapunk, thanks bro, i am very grateful that you liked it
MonkeyNo1
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If you enhance the indicator in the future, could you consider adding color options for histogram magnitude? In the same way you have done it for ADX, options for the user to set different colors based on the value of the histogram reading. I find, for example, that several readings in a row greater than +/- 20 is not that safe of a rally or pullback to enter, but readings smaller than +/- 10 are often reliable pullbacks or rallies to buy or short.
Marqx
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@MonkeyNo1, I had never stopped to think about it, I actually noticed that there is a kind of beginning of a trend around the values -10 to 10, and when it goes over 20 it seems to me that it is getting closer and closer to a trend exhaustion. Indeed it is something that is really worth putting in the indicator, thanks for the idea
MonkeyNo1
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@Marqx, You are correct. When volatility is muted, trend is shallow to flat, action seems kind of random, extreme readings will tend to coincide with reversal points. But, when action tends to be persistent...
Look at the updated indicator chart just posted:
2020 July 27 and August 17 Dark Green Bars. Shorting this didn't get much, even if timed it perfectly. Fail to go down when it should, one ought to consider potential for up trend to start.
2020 October 19 to 2021 April 5 New trend confirmed! All dark green. Don't be shorting this all the way to the top! Don't be the dumbass that thinking 10 dark greens in a row, what are the odds of an 11th one?
2021 October 11 to Nov 8 Higher high in price, but lighter green in DMI. Weakening momentum, or price/momentum divergence. No guarantees, but at least if one shorts here, they're doing it into a potential double top.
2022 March 28 Only 1 light green DMI bar before going red again. A weak bounce. Higher likelihood the uptrend is over. No guarantees, but...
2022 June 13 to July 11 First block of dark red. Downside momentum might be serious. Probably won't do well picking this bottom. That is, probability of further downside is greater than break even, and bounces will probably be fairly shallow. If one didn't short the double top momentum divergence, and didn't short the speculative trend reversal, then a shallow or weak rally here could offer a low risk entry. Of course, this offer doesn't come with a money back guarantee!
2022 August 15 After a short and shallow retrace, a big down bar breaking out of a bear flag. Good place to sell short. Can't predict the future, but momentum is definitely down.
Marqx
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@MonkeyNo1, I hadn't looked at it that way, it really makes sense in light of what you've analyzed, what I had seen at first was more along the lines of "if the histogram color is dark, it is forbidden to open positions against that side", but one thing that I noticed that was quite consistent is if immediately after the dark color of the histogram becomes less dark, it is a clear sign of exhaustion of that movement, such as 25 dec 17, 19 aug 19, 16 mar 20, 03 aug 20 and 24 aug 20 (this time it seems more like a mistake than a hit), 12 apr 21, 18 Jul 22 also seems like a mistake, all the dates that hit the movement were the same, it was extremely dark, and the immediately following candle became less dark, indicating a trend exhaustion while a trend reversal began. Also, these are just my perceptions, I like to study perceptions to see if they are correct in terms of the law of large numbers, I haven't done it yet, but it's definitely on my to-do list, probably this idea that you brought me will be of great value to use as a trend filter in my setups
nick181195
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how to use? i cant uderstand. it ll be helpful if someone help
Marqx
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@nick181195, when DI+ is above DI- it indicates that the market is bullish, and when DI- is above DI+ it indicates that the market is bearish, and ADX shows market strength
what I did in this indicator was to show it in an easier way to visualize when the DI+ is above the DI-, which is the column above 0 green, and when the DI- is above the DI+, which is the column below 0 red , making it visually similar to MACD because the analysis is quite similar in that context
as for the ADX are the circles, when the circle is gray, the ADX will be indicating that the market is not trending, and when it is colored it will be trending according to the colors, yellow for weak trend, orange for medium strength trend, and red for a strong trend