Demand Index For ThinkOrSwim

[Mike]

Hello, Can anyone help me add a moving average (various types and lengths) to the Demand Index Indicator?

 

[YungTraderFromMontana]

Here you go

declare lower;
input length = 5;
input DMIndx_averageType = AverageType.EXPONENTIAL;
input DMIndx_average_length = 10;
def wClose = (high + low + 2 * close) * 0.25;
def wCRatio = (wClose - wClose[1]) / Min(wClose, wClose[1]);
def closeRatio = 3 * wClose / Average(Highest(high, 2) - Lowest(low, 2), length) * AbsValue(wCRatio);
def volumeRatio = volume / Average(volume, length);
def volumePerClose = volumeRatio / Exp(Min(88, closeRatio));
def buyP;
def sellP;
if (wCRatio > 0) {
buyP = volumeRatio;
sellP = volumePerClose;
} else {
buyP = volumePerClose;
sellP = volumeRatio;
}
def buyPres = if IsNaN(buyPres[1]) then 0 else ((buyPres[1] * (length - 1)) + buyP) / length;
def sellPres = if IsNaN(sellPres[1]) then 0 else ((sellPres[1] * (length - 1)) + sellP) / length;
def tempDI;
if ((((sellPres[1] * (length - 1)) + sellP) / length - ((buyPres[1] * (length - 1)) + buyP) / length) > 0) {
tempDI = - if (sellPres != 0) then buyPres / sellPres else 1;
} else {
tempDI = if (buyPres != 0) then sellPres / buyPres else 1;
}
plot DMIndx = if IsNaN(close) then Double.NaN else if tempDI < 0 then -1 - tempDI else 1 - tempDI;
plot ZeroLine = 0;
plot DMIndx_Average = Movingaverage(DMIndx_averageType, DMIndx, DMIndx_average_length);
DMIndx.DefineColor("Above", Color.UPTICK);
DMIndx.DefineColor("Below", Color.DOWNTICK);
DMIndx.AssignValueColor(if DMIndx > DMIndx_Average then DMIndx.Color("Above") else DMIndx.Color("Below"));

 

[Mike]

Thank you YoungTrader! Given your thinkscript, I can now see where I made my mistake. Thanks again for enabling me to learn!

 

[tenacity11]

Curious at to what you find the best input length for the demand index is when trading on a 3m chart? TIA

 

[SHJ]

Hi Team,

In the following study, I am trying to add a white vertical line at the point where the Demand Index line crosses the zero line (both to the upside and downside). Can somebody help?

#
# Charles Schwab & Co. (c) 2010-2025
#

declare lower;

input length = 5;

def wClose = (high + low + 2 * close) * 0.25;
def wCRatio = (wClose - wClose[1]) / Min(wClose, wClose[1]);
def closeRatio = 3 * wClose / Average(Highest(High, 2) - Lowest(Low, 2), length) * AbsValue(wCRatio);
def volumeRatio = Volume / Average(Volume, length);
def volumePerClose = volumeRatio / exp(Min(88, closeRatio));
def buyP;
def sellP;
if (wCRatio > 0) {
buyP = volumeRatio;
sellP = volumePerClose;
} else {
buyP = volumePerClose;
sellP = volumeRatio;
}
def buyPres = if IsNaN(buyPres[1]) then 0 else ((buyPres[1] * (length - 1)) + buyP) / length;
def sellPres = if IsNaN(sellPres[1]) then 0 else ((sellPres[1] * (length - 1)) + sellP) / length;
def tempDI;
if ((((sellPres[1] * (length - 1)) + sellP) / length - ((buyPres[1] * (length - 1)) + buyP) / length) > 0) {
tempDI = - if (sellPres != 0) then buyPres / sellPres else 1;
} else {
tempDI = if (buyPres != 0) then sellPres / buyPres else 1;
}
plot DMIndx = if IsNaN(close) then Double.NaN else if tempDI < 0 then -1 - tempDI else 1 - tempDI;
plot ZeroLine = 0;

DMIndx.setDefaultColor(GetColor(1));
ZeroLine.SetDefaultColor(GetColor(5));

 

[BenTen]

Add this to the bottom of the script

AddverticalLine(DMIndx crosses Zeroline);

 

[SHJ]

This is awesome! Thank you so much, @BenTen.

Would it be possible to help me customize the script so it becomes an “upper study” that shows the “vertical line” only?

 

[BenTen]

This is awesome! Thank you so much, @BenTen.

Would it be possible to help me customize the script so it becomes an “upper study” that shows the “vertical line” only?

Sure thing, here's the code

#
# Charles Schwab & Co. (c) 2010-2025
#

input length = 5;

def wClose = (high + low + 2 * close) * 0.25;
def wCRatio = (wClose - wClose[1]) / Min(wClose, wClose[1]);
def closeRatio = 3 * wClose / Average(Highest(High, 2) - Lowest(Low, 2), length) * AbsValue(wCRatio);
def volumeRatio = Volume / Average(Volume, length);
def volumePerClose = volumeRatio / exp(Min(88, closeRatio));
def buyP;
def sellP;
if (wCRatio > 0) {
buyP = volumeRatio;
sellP = volumePerClose;
} else {
buyP = volumePerClose;
sellP = volumeRatio;
}
def buyPres = if IsNaN(buyPres[1]) then 0 else ((buyPres[1] * (length - 1)) + buyP) / length;
def sellPres = if IsNaN(sellPres[1]) then 0 else ((sellPres[1] * (length - 1)) + sellP) / length;
def tempDI;
if ((((sellPres[1] * (length - 1)) + sellP) / length - ((buyPres[1] * (length - 1)) + buyP) / length) > 0) {
tempDI = - if (sellPres != 0) then buyPres / sellPres else 1;
} else {
tempDI = if (buyPres != 0) then sellPres / buyPres else 1;
}
def DMIndx = if IsNaN(close) then Double.NaN else if tempDI < 0 then -1 - tempDI else 1 - tempDI;
def ZeroLine = 0;

AddverticalLine(DMIndx crosses Zeroline);

 

[antwerks]

Is there away to differentiate between bull and bearish?

 

[MerryDay]

Is there away to differentiate between bull and bearish?

Sadly no. It is not coded for bull and bearish.

The Demand Index is an oscillator. Like all oscillators, it is designed to detect trend/momentum.
The Demand Index blends price and volume to spot trend shifts as a forward-looking indicator.

Here is a summary for how the demand index was written to be used:

• Divergence – if the Demand Index moves the opposite way of price. Possible reversal?
• Big peaks, big moves – a high spike in the index could foreshadow a fresh price high.
• Hidden weakness – price rising while the index drops? Possible market top?
• Zero-line cross = when the index flips above or below zero, momentum change, but not necessarily direction change.
• Flatlining around zero? – is weak price action, probably not sustainable.
• Long-term divergence means big pivots – If the index and price part ways over time, a major top or bottom is brewing.

Like all oscillators, these zones are more likely to be meaningful when price is near support or resistance. Otherwise, like all oscillators, these identified points are generally not significant.

 

[antwerks]

can we add an input for both UCL (upper control limit) and LCL (lower control limit) with red color upper and green color lower

 

[useThinkScript]

can we add an input for both UCL (upper control limit) and LCL (lower control limit) with red color upper and green color lower

add this code snippet to your study:

input OB = .2;
input OS = -.2;

plot pOB = if IsNaN(close) then Double.NaN else OB;
       pOB.SetDefaultColor(color.red);

plot pOS = if IsNaN(close) then Double.NaN else OS;
       pOS.SetDefaultColor(color.green);

 

[SHJ]

Sure thing, here's the code

#
# Charles Schwab & Co. (c) 2010-2025
#

input length = 5;

def wClose = (high + low + 2 * close) * 0.25;
def wCRatio = (wClose - wClose[1]) / Min(wClose, wClose[1]);
def closeRatio = 3 * wClose / Average(Highest(High, 2) - Lowest(Low, 2), length) * AbsValue(wCRatio);
def volumeRatio = Volume / Average(Volume, length);
def volumePerClose = volumeRatio / exp(Min(88, closeRatio));
def buyP;
def sellP;
if (wCRatio > 0) {
buyP = volumeRatio;
sellP = volumePerClose;
} else {
buyP = volumePerClose;
sellP = volumeRatio;
}
def buyPres = if IsNaN(buyPres[1]) then 0 else ((buyPres[1] * (length - 1)) + buyP) / length;
def sellPres = if IsNaN(sellPres[1]) then 0 else ((sellPres[1] * (length - 1)) + sellP) / length;
def tempDI;
if ((((sellPres[1] * (length - 1)) + sellP) / length - ((buyPres[1] * (length - 1)) + buyP) / length) > 0) {
tempDI = - if (sellPres != 0) then buyPres / sellPres else 1;
} else {
tempDI = if (buyPres != 0) then sellPres / buyPres else 1;
}
def DMIndx = if IsNaN(close) then Double.NaN else if tempDI < 0 then -1 - tempDI else 1 - tempDI;
def ZeroLine = 0;

AddverticalLine(DMIndx crosses Zeroline);

This is perfect! Thank you so much, @BenTen. Have a great weekend.

 

[antwerks]

add this code snippet to your study:

input OB = .2;
input OS = -.2;

plot pOB = if IsNaN(close) then Double.NaN else OB;
       pOB.SetDefaultColor(color.red);

plot pOS = if IsNaN(close) then Double.NaN else OS;
       pOS.SetDefaultColor(color.green);

THANK YOU!!!