Better indicators than DMI?

[Brettser16]

I was wondering if there was another indicator out there that is better than the DMI indicator? Any advise would be appreciated

 

[BenTen]

What's wrong with the DMI indicator? It would be helpful if you could provide more context as to what you're looking for.

 

[Brettser16]

I use the dmi indicator daily and usually buy when say a di-splits the adx and if the adx is above 20 but you can get alot of false indications was wondering if there was anything better

 

[wtf_dude]

I use the dmi indicator daily and usually buy when say a di-splits the adx and if the adx is above 20 but you can get alot of false indications was wondering if there was anything better

False signals of what? breakouts? The crossing of the adx and a dmi line aren't really what the system is built for. ADX says how strong a trend is, The higher of the 2 DMI lines says which direction is dominant. They're measuring 2 different things. Did you read about using that dmi crossing the adx signal from a forum or newsletter by chance?

 

[Brettser16]

Its a way that someone in my group trades along with other indicators but when the adx crosses 20 its starting to gain strength so when the di-splits the adx and the di+ starts to point up its a good indication for calls but alot of times either the adx will turn down or the di-will start to head back up and di+ start to point down leading imo to a false indication

 

[BenTen]

@Brettser16 ADX is a lagging indicator. I find that it lags at an extreme level when comparing to other indicators—just a thought.

An article that you may find useful:

It is a lagging indicator, meaning that it confirms an uptrend or downtrend after the direction is already established. The ADX will not change until after the market or security has already reversed its trend

 

[Brettser16]

Do you have any suggestions on one that doesn't lag as much and possibly better? Not saying I'm looking for something to be 100% accurate

Thank you for that article

 

[MerryDay]

@Brettser16 I use DMI and ADX to confirm direction and to tell me when not to trade. Not sure that I have ever seen a backtested strategy that uses it to determine entry.

However, if it works for you, googling this site for non lagging ADX does return some interesting threads.

 

[Joseph Patrick 18]

What's wrong with the DMI indicator? It would be helpful if you could provide more context as to what you're looking for.

Hi Ben, quick question..I am using the DMI indicator but I manually have to put in the 25 line because its hard to see with the price bubbles to the right...the problem is once I put a 25 line in I have to do it manually for every stock. Is there an easier way to accomplish this with a script added to the DMI? Thanks

https://imgur.com/ENxY2Sw

 

[BenTen]

@Joseph Patrick 18 As easy as a single line of code below:

plot line_25 = 25;

Here is the full script:

#
# TD Ameritrade IP Company, Inc. (c) 2008-2020
#

declare lower;

input length = 14;
input averageType = AverageType.WILDERS;

def hiDiff = high - high[1];
def loDiff = low[1] - low;

def plusDM = if hiDiff > loDiff and hiDiff > 0 then hiDiff else 0;
def minusDM =  if loDiff > hiDiff and loDiff > 0 then loDiff else 0;

def ATR = MovingAverage(averageType, TrueRange(high, close, low), length);
plot "DI+" = 100 * MovingAverage(averageType, plusDM, length) / ATR;
plot "DI-" = 100 * MovingAverage(averageType, minusDM, length) / ATR;

def DX = if ("DI+" + "DI-" > 0) then 100 * AbsValue("DI+" - "DI-") / ("DI+" + "DI-") else 0;
plot ADX = MovingAverage(averageType, DX, length);

"DI+".SetDefaultColor(GetColor(1));
"DI-".SetDefaultColor(GetColor(8));
ADX.SetDefaultColor(GetColor(5));

plot line_25 = 25;

 

[Joseph Patrick 18]

@Joseph Patrick 18 As easy as a single line of code below:

plot line_25 = 25;

Here is the full script:

#
# TD Ameritrade IP Company, Inc. (c) 2008-2020
#

declare lower;

input length = 14;
input averageType = AverageType.WILDERS;

def hiDiff = high - high[1];
def loDiff = low[1] - low;

def plusDM = if hiDiff > loDiff and hiDiff > 0 then hiDiff else 0;
def minusDM =  if loDiff > hiDiff and loDiff > 0 then loDiff else 0;

def ATR = MovingAverage(averageType, TrueRange(high, close, low), length);
plot "DI+" = 100 * MovingAverage(averageType, plusDM, length) / ATR;
plot "DI-" = 100 * MovingAverage(averageType, minusDM, length) / ATR;

def DX = if ("DI+" + "DI-" > 0) then 100 * AbsValue("DI+" - "DI-") / ("DI+" + "DI-") else 0;
plot ADX = MovingAverage(averageType, DX, length);

"DI+".SetDefaultColor(GetColor(1));
"DI-".SetDefaultColor(GetColor(8));
ADX.SetDefaultColor(GetColor(5));

plot line_25 = 25;

Thanks Ben appreciate as usual!! And as usual I learn something new everyday..thanks lol