Demand Index w/Moving Average

[Mike]

Hello, Can anyone help me with the following thinkscript attempt to add a moving average (various types and lengths) to the Demand Index Indicator. My modified version of the Demand Index does not work correctly when changing input selections. Thanks!

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 = Average(DMIndx);

DMIndx.DefineColor("Above", Color.UPTICK);
DMIndx.DefineColor("Below", Color.DOWNTICK);
DMIndx.AssignValueColor(if DMIndx > DMIndx_Average then DMIndx.Color("Above") else DMIndx.Color("Below"));

 

[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

 

[markos]

@Mike Please edit the script above and insert the Header Information. We all need to know where it came from & the developer needs credit for their work. Thanks.

 

[Mike]

@Mike Please edit the script above and insert the Header Information. We all need to know where it came from & the developer needs credit for their work. Thanks.

#YungTraderFromMontana

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"));

 

[123 man]

#YungTraderFromMontana

#The DMI is especially useful for trend trading strategies because it differentiates between strong and weak trends, allowing the trader to enter only the ones with real momentum. DMI works on all time frames

#updated /  paint candles

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.RED);
DMIndx.AssignValueColor(if DMIndx > DMIndx_Average then DMIndx.Color("Above") else DMIndx.Color("Below"));


assignPriceColor(if   DMIndx < DMIndx_Average  then Color.RED else Color.UpTick);

 

[123 man]

I put it into the candles. spending hours watching lower studies for signals isnt my thing.