Beardy_Fred

10X Bars - Directional Trends

My interpretation of John Carter's popular Simpler Trading 10X Bars indicator.

Momentum is displayed to quickly see the quality and strength of a trend based on a calculation of the Directional Movement Index (DMI). The DMI is an indicator developed by J. Welles Wilder in 1978 that identifies in which direction the price of an asset is moving. The DMI is calculated by comparing prior highs and lows and produces 2 measurements illustrating the strength of the current trend:
-> a positive directional movement line ( +DI ); and
-> a negative directional movement line ( -DI ).

The average directional index ( ADX ) measures the strength of the current trend, either +DI or +DI ; a reading above 20 typically indicates a strong trend.

-> Green bars indicate an uptrend i.e. when +DI is above -DI and ADX is greater than 20 - there is more upward pressure than downward pressure in the price;
-> Red bars indicate a downtrend i.e. when -DI is above +DI and ADX is greater than 20 - there is more downward pressure on the price; and
-> Yellow bars indicate no strong directional trend and potential for a reversal.

Volume spikes 50% above average volume are then flagged as dots at the bottom of the chart (although you can change this location), confirming the momentum further.

This indicator should compliment other popular indicators, as confirmation whether to stay in a position or not.
Catatan Rilis: Minor code updates
Skrip open-source

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

Inggin menggunakan skrip ini pada chart?