Dsl - DMI Oscillator - MetaTrader 5 Script | Forex Indicator Download - MT4/MT5 Resources

DMI short description‌ (because it is not widely known).

The series of indicator indices (DMI) that make up the Wilder Directional Movement Index are the Positive Movement Indicator (+DI) and the Negative Movement Indicator (-DI). They provide the basis for the more widely recognized Average Directional Index (ADX). Whereas ADX provides information about the strength of price movements, but not its direction, +DI and -DI provide information about the positive or negative direction of price movements over a period of time.

Wilder provided complete information on the function and structure of all the components that make up the Directional Movement Index in his 1978 book, New Concepts in Technical Trading Systems . In general, the positive and negative components of the DMI are concentrated in that part of the current bar's trading range beyond the previous price bar. If it is higher, it is considered positive (+) if it is lower, it is marked negative (-). These values ​​are divided by the true amplitude and averaged over a period of time, usually 14 periods. A +DI moving above -DI indicates that a positive or upward price direction has replaced a negative or downward price direction. On the contrary, when +DI is below -DI, ​​selling pressure from the price or lack of upward momentum in the price is taking over. When lines intersect, the direction or trend may change.

‌As with all dsl indicators, it can be used for trend and counter trend trading, but in this case dsl can increase the momentum strength estimate also.

Attachment download

📎 dsl_-_dmi_oscillator.mq5 (21.12 KB)

Source: MQL5 #17855