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MTF ADX and DMI Grid with RSI
Actualizado
Hello and welcome to my latest revision of my ADX and DMI series.
This indicator features the Average Directional Index (ADX) and the Directional Moving Index (DMI), with a multi-timeframe (MTF) grid that shows you the dominant DMI on the select timeframes. There are four grid rows, allowing you to select four different timeframes to show in the study. In addition to this, the colors displayed in the grid will reflect RSI levels, when the RSIs on the select timeframes exceed 70 or 80, or fall below 30 or 20.
For example, if one of your select timeframes is 4h, the standard settings will display a blue block in the relative row of the grid if the +DMI is above the -DMI on the 4h timeframe. If the RSI exceeds 70, the shade of blue will become darker, and become even darker if the 4h RSI exceeds 80. This will apply for the inverse case, where if the -DMI is dominant, the grid will display a darker shade of red as the 4h RSI falls below 30 and 20.
The ADX is the line in the oscillator that changes between black, white, and gray. ADX will be black when it is rising, white when it is falling, and gray when it is below the key level value (default set to 20). When ADX is below 20, you can assume the dominant DMI is irrelevant as there is no real trend strength. You can change your set key value in the oscillator settings, as well as all the colors, and so on.
If you are not familiar with the ADX and DMI indicator, a useful guide can be found below:
1) An ADX reading below 20 signifies that there is no prevailing trend in play. This means that, regardless of DMI dominance, there is no real strength. This is a good measure for sideways price action.
2) If +DMI is above -DMI, this means that a bullish trend is in play, and vice versa (where a -DMI dominance shows a bearish trend in play). Make sure to pay attention to the value of ADX, as this will show the significance of DMI dominance.
3) The strongest possible position you can have is one where the DMIs have a crossover on an ADX that is perking or sloping upwards.
4) You should be exiting your positions at the peak of the ADX , shown by the color changes, as this is often the furthest extent of the dominant trend. Once the ADX tips, the trend weakens and is less likely to see continuation. NOTE: Divergences are possible, where the ADX may be falling, but the dominant trend sees continuation. This simply means that the dominant trend is weakening, but still going.
5) Speculating on DMI crossovers is dangerous, especially on larger timeframes. Be careful when doing so if you are not familiar with the calculations behind the DMIs and if you are not familiar with how movements on lower timeframes translate to larger timeframes.
Additional resources to learn about ADX & DMI:
1) seekingalpha.com/instablog/3452-scotts-investments/1560-an-explanation-of-the-dmi-adx-indicator
2) stockcharts.com/school/doku.php?id=chart_school:technical_indicators:average_directional_index_adx
Previous versions:
1)
2)
Happy trading and feel free to reach out with any question, suggestions, or concerns!
This indicator features the Average Directional Index (ADX) and the Directional Moving Index (DMI), with a multi-timeframe (MTF) grid that shows you the dominant DMI on the select timeframes. There are four grid rows, allowing you to select four different timeframes to show in the study. In addition to this, the colors displayed in the grid will reflect RSI levels, when the RSIs on the select timeframes exceed 70 or 80, or fall below 30 or 20.
For example, if one of your select timeframes is 4h, the standard settings will display a blue block in the relative row of the grid if the +DMI is above the -DMI on the 4h timeframe. If the RSI exceeds 70, the shade of blue will become darker, and become even darker if the 4h RSI exceeds 80. This will apply for the inverse case, where if the -DMI is dominant, the grid will display a darker shade of red as the 4h RSI falls below 30 and 20.
The ADX is the line in the oscillator that changes between black, white, and gray. ADX will be black when it is rising, white when it is falling, and gray when it is below the key level value (default set to 20). When ADX is below 20, you can assume the dominant DMI is irrelevant as there is no real trend strength. You can change your set key value in the oscillator settings, as well as all the colors, and so on.
If you are not familiar with the ADX and DMI indicator, a useful guide can be found below:
1) An ADX reading below 20 signifies that there is no prevailing trend in play. This means that, regardless of DMI dominance, there is no real strength. This is a good measure for sideways price action.
2) If +DMI is above -DMI, this means that a bullish trend is in play, and vice versa (where a -DMI dominance shows a bearish trend in play). Make sure to pay attention to the value of ADX, as this will show the significance of DMI dominance.
3) The strongest possible position you can have is one where the DMIs have a crossover on an ADX that is perking or sloping upwards.
4) You should be exiting your positions at the peak of the ADX , shown by the color changes, as this is often the furthest extent of the dominant trend. Once the ADX tips, the trend weakens and is less likely to see continuation. NOTE: Divergences are possible, where the ADX may be falling, but the dominant trend sees continuation. This simply means that the dominant trend is weakening, but still going.
5) Speculating on DMI crossovers is dangerous, especially on larger timeframes. Be careful when doing so if you are not familiar with the calculations behind the DMIs and if you are not familiar with how movements on lower timeframes translate to larger timeframes.
Additional resources to learn about ADX & DMI:
1) seekingalpha.com/instablog/3452-scotts-investments/1560-an-explanation-of-the-dmi-adx-indicator
2) stockcharts.com/school/doku.php?id=chart_school:technical_indicators:average_directional_index_adx
Previous versions:
1)
2)
Happy trading and feel free to reach out with any question, suggestions, or concerns!
Notas de prensa
Updated script to make the RSI-color transitions more subtle. Created sequenced list in timeframe selection. Will add pre-made color schemes for the grid if there is enough interest. Currently, you can only manually select the colors from the color pallet.
Notas de prensa
Color sets have been added!You can now choose from pre-made schemes for the grid, as well as the DMIs and ADX lines! Use the "Inputs" tab of the indicator, where you select the desired timeframes, to select the colors you want displayed. There are many pre-made schemes for the MTF grid, as the original color scheme didn't look good in dark themes, so some changes have been made to accommodate such users! In addition to this, there are drop down menus in the "Inputs" tab that allow you to easily change colors for the DMI lines and ADX. The ADX has three inputs, with a selection of color for a rising ADX, a selection for a falling ADX, and a selection for ADX when it is below the key level!
If you encounter any issues, or would like more color sets added, feel free to reach out and notify me!
Happy trading :)
Notas de prensa
Fix for MTF grid (re: TradingView columns visual update)Script protegido
Este script se publica con código cerrado, pero puede utilizarlo libremente. Márquelo como favorito y podrá usarlo en un gráfico. El código fuente no se puede ver ni modificar.
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