This indicator is based on the existing DMI indicator, but familiarity with the DMI is not required. The author's goal was to make a less laggy, more intuitively interpretable indicator compared to the DMI.
A comparison to the DMI is given above. The reader may see for themselves that trends are recognized quicker. A technical rundown of adjustments made to the DMI is given below.
Instead of interpreting the , a sensitivity setting is added and its default value is 25. The value of this sensitivity setting is subtracted from the . Then, any values which fell below 0 are set to 0. Now, just flip the value of the when the is greater than the . The result is then plotted as a histogram.
In addition, this indicator has less lag between price action and trend recognition. This is achieved by removing the applied to the , and instead applying lag-free smoothing to and before computing the and then once more applying lag-free smoothing to the result of the computation.