Better indicators than DMI?

Brettser16

New member
I was wondering if there was another indicator out there that is better than the DMI indicator? Any advise would be appreciated
 
Last edited by a moderator:
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
 
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?
 
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
 
@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
 
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


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

plot line_25 = 25;

Here is the full script:

Code:
#
# 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 As easy as a single line of code below:

plot line_25 = 25;

Here is the full script:

Code:
#
# 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
 
Last edited:
hi. I want to enter buy and sell orders when the indicator rises above zero and below zero, but without confirmation of the closing candle, that is, when the candle starts I want someone to help me

input length = 18;
input paintBars = yes;
input averageType = AverageType.WILDERS;

def diPlus = DMI(length, averageType)."DI+";
def diMinus = DMI(length, averageType)."DI-";

plot Osc = diPlus - diMinus;
plot Hist = Osc;
plot ZeroLine = 0;

Osc.SetDefaultColor(GetColor(0));
Hist.SetPaintingStrategy(PaintingStrategy.HISTOGRAM);
Hist.SetLineWeight(3);
Hist.DefineColor("Positive", Color.UPTICK);
Hist.DefineColor("Negative", Color.DOWNTICK);
Hist.AssignValueColor(if Hist > 0 then Hist.Color("Positive") else Hist.Color("Negative"));
Hist.HideTitle();
ZeroLine.SetDefaultColor(Color.GRAY);

DefineGlobalColor("Positive", Color.UPTICK);
DefineGlobalColor("Negative", Color.DOWNTICK);
AssignPriceColor(if !paintBars
then Color.CURRENT
else if Osc > 0
then GlobalColor("Positive")
else GlobalColor("Negative"));
def buy = hist crosses above 0;
def sell = hist crosses below 0.3 ;

AddOrder(OrderType.BUY_TO_OPEN, condition = buy, price = open , tickcolor = Color.GREEN, arrowcolor = Color.GREEN);
AddOrder(OrderType.SELL_To_Open, condition = sell, price = open,
tickcolor = Color.GREEN, arrowcolor = Color.GREEN);
 
hi. I want to enter buy and sell orders when the indicator rises above zero and below zero, but without confirmation of the closing candle, that is, when the candle starts I want someone to help me

input length = 18;
input paintBars = yes;
input averageType = AverageType.WILDERS;

def diPlus = DMI(length, averageType)."DI+";
def diMinus = DMI(length, averageType)."DI-";

plot Osc = diPlus - diMinus;
plot Hist = Osc;
plot ZeroLine = 0;

Osc.SetDefaultColor(GetColor(0));
Hist.SetPaintingStrategy(PaintingStrategy.HISTOGRAM);
Hist.SetLineWeight(3);
Hist.DefineColor("Positive", Color.UPTICK);
Hist.DefineColor("Negative", Color.DOWNTICK);
Hist.AssignValueColor(if Hist > 0 then Hist.Color("Positive") else Hist.Color("Negative"));
Hist.HideTitle();
ZeroLine.SetDefaultColor(Color.GRAY);

DefineGlobalColor("Positive", Color.UPTICK);
DefineGlobalColor("Negative", Color.DOWNTICK);
AssignPriceColor(if !paintBars
then Color.CURRENT
else if Osc > 0
then GlobalColor("Positive")
else GlobalColor("Negative"));
def buy = hist crosses above 0;
def sell = hist crosses below 0.3 ;

AddOrder(OrderType.BUY_TO_OPEN, condition = buy, price = open , tickcolor = Color.GREEN, arrowcolor = Color.GREEN);
AddOrder(OrderType.SELL_To_Open, condition = sell, price = open,
tickcolor = Color.GREEN, arrowcolor = Color.GREEN);
"I want someone to help me" is that really the best way to ask. Switch the ordertype to
Code:
AddOrder(OrderType.SELL_To_Close, condition = sell, price = open, tickcolor = Color.MAGENTA, arrowcolor = Color. MAGENTA);

You also need to be aware of the limitations of thinking you can open an order on open if you wont know what the signal is until it's...past open
 

Join useThinkScript to post your question to a community of 21,000+ developers and traders.

Similar threads

Not the exact question you're looking for?

Start a new thread and receive assistance from our community.

87k+ Posts
461 Online
Create Post

Similar threads

Similar threads

The Market Trading Game Changer

Join 2,500+ subscribers inside the useThinkScript VIP Membership Club
  • Exclusive indicators
  • Proven strategies & setups
  • Private Discord community
  • ‘Buy The Dip’ signal alerts
  • Exclusive members-only content
  • Add-ons and resources
  • 1 full year of unlimited support

Frequently Asked Questions

What is useThinkScript?

useThinkScript is the #1 community of stock market investors using indicators and other tools to power their trading strategies. Traders of all skill levels use our forums to learn about scripting and indicators, help each other, and discover new ways to gain an edge in the markets.

How do I get started?

We get it. Our forum can be intimidating, if not overwhelming. With thousands of topics, tens of thousands of posts, our community has created an incredibly deep knowledge base for stock traders. No one can ever exhaust every resource provided on our site.

If you are new, or just looking for guidance, here are some helpful links to get you started.

What are the benefits of VIP Membership?
VIP members get exclusive access to these proven and tested premium indicators: Buy the Dip, Advanced Market Moves 2.0, Take Profit, and Volatility Trading Range. In addition, VIP members get access to over 50 VIP-only custom indicators, add-ons, and strategies, private VIP-only forums, private Discord channel to discuss trades and strategies in real-time, customer support, trade alerts, and much more. Learn all about VIP membership here.
How can I access the premium indicators?
To access the premium indicators, which are plug and play ready, sign up for VIP membership here.
Back
Top