Directional Volatility Index (DVI) - SoldiDirectional Volatility Oscillator
What the DVI does is it measure 9 different volatility models based on their directional correlation and then scores that. While it calculated the volatility it also measures and scores 5 different indicators to find the likeliness of a retail position. That way the Oscillated value being plotted is that of an accurate modelled nature. This indicator aims to measure and score the directional volatility across the 9 different volatility models and then plots it as an oscillator. Included in that calculation is a measure of the likeliness of a retail traders position.
This can be used to gauge liquidity sweeps in a strategy like Smart Money Concepts. As, all the retail money is long - expect a sweep of the lows or equal highs. etc. more so you can also use this as a market meter like RSI , if the market is Over bought or Over sold, the DVI value will be over 100 or under -100 - or this tool can be used to gauge the underlaying trend!
Examples
Here is an example on BTCUSD - 1d
- as you can see there is significant trend when the DVI is crossed
Here is that same example on BTCUSD - 1d zoomed into 4h
- as you can see there is significant trend when the DVI is crossed
Dvi
DVI BandsA new idea of mine that I am presently experimenting on for my trades.
The DVI bands is based on my previously published DVI script:
The Directional Volume Index (DVI) is defined as follows:
DVI = VWMA (len1) - SMA (len2), where by default, len1==len2
The position of the DVI above/below the current price provides volume confirmation of the direction of the price trend.
The magnitude of the DVI above/below the current price provides the volume confirmation of the strength of the price trend.
The stdev band is derived from the DVI where:
The DVI piercing the Stdev boundary suggests a significant move in the corresponding direction.
Tightening of the DVI-Stdev bands can suggest the possible incoming of major move ahead.
The novel aspects and principles of this indicator and this source code are the property of © cybernetwork.
Directional Volume Index (DVI) {PREMIUM}This script is a complete analysis package based on the Directional Volume Index (DVI).
The Directional Volume Index (DVI) is defined as follows:
DVI = VWMA (len1) - SMA (len2), where by default, len1==len2
The sign of the DVI provides volume confirmation of the direction of the price trend.
The magnitude of the DVI provides the volume confirmation of the strength of the price trend.
The higher-order oscillator, ADO, derived from the DVI, aids with the prediction of probable next move.
---
Here, the main oscillator (main-OSC) is the RSI modulated by the DVI (default). The RSI mode can be disabled to revert to a normal DVI oscillator for the main-OSC.
When the main-OSC (thicker line) is > 0, it is green; and if it is < 0, it is red.
Accompanying the main-OSC is its purple Moving Average (MA) line (VWMA-mode is set as the default, but user can choose to switch to SMA-mode). The crossing of the main-oscillator into its MA-line signals a significant turn in the main-OSC, similar to how the cross between MAs are being used to signal a golden/death-cross (example: main-OSC crossing down its MA-line indicates a probable shift into the bearish phase).
The DVI can be re-scaled and whenever its value > 100, a background fill between the oscillator and the zeroline appear to indicates overbought condition; and < -100 indicates oversold condition. The user can tweak the scaling factor to optimize this for a given chart and timeframe.
A proprietary asymmetric differential oscillator (ADO) is also implemented, which is modulated by the main-OSC. When this (thinner line) secondary oscillator is > 0, it is yellow; and when it is < 0, it is lavender. The user can select the order of the differential (i.e. Order 1 = Momentum, Order 2 = Acceleration, Order 3 = Jerk, Order 4 = Snap, Order 5 = Crackle, Order 6 = Pop). This oscillator provides details of the more subtle underlying/hidden trends that is emerging or brewing, and may hint of an incoming move ahead of time. Divergence in the sign and slope of this secondary oscillator with respect to the main-OSC may provide a useful edge for trade setup.
A (thick transparent light blue) volume oscillator is also provided. An increase in volume trend provides confirmation of (or solidifies) the movements in the main-OSC over that period. A falling volume oscillator trend raises doubts on the main-OSC trend, and hints of the possibility of a counter-trend (also look at the secondary ADO oscillator for clues).
Two set of divergence and hidden divergence indicators have been added. They can be enabled/disabled, and users can link them to specific oscillators of their choosing.
The novel aspects and principles of this indicator and this source code are the property of © cybernetwork.
Directional Volume IndexA new idea of mine that I am presently experimenting on for my trades.
The Directional Volume Index (DVI) is defined as follows:
DVI = VWMA(len1) - SMA(len2), where by default, len1==len2
The sign of the DVI provides volume confirmation of the direction of the price trend.
The magnitude of the DVI provides the volume confirmation of the strength of the price trend.
The novel aspects and principles of this indicator and this source code are the property of © cybernetwork.
This indicator and script is free for the TV community to use.