Popular tags: Support, Resistance, Trend, Range, Fibonacci, Wave, Divergence, Multi time frames(MTF), Swing, Volume, Overbought, Oversold
 


DMI Oscillator Divergence indicator for Thinkorswim TOS

DMI Oscillator Divergence indicator for Thinkorswim TOS
Availability: In Stock
Price: $149.00USD
Qty:     - OR -   Add to Wish List
Add to Compare
0 (0/5)  0 reviews  |  Write a review

This product is part of the:DMI OSC Divergence Indicator all-in-one package for Thinkorswim
The price is for the package.

The DMI Oscillator is a technical indicator which uses values of DMI in order to predict miscellaneous sides of market behavior.

Two components of DMI are used in calculation: DI+ and DI-; the DMI oscillator calculates the difference between these components and represents it as both a line and a histogram.

 
Divergence indicator gives possible reversal signals when there are discrepancies between DMI Oscillator and price movement.

Divergence emerges when price and oscillator indicator move in different directions. 

For instance, an uptrend Negative Divergence occurs when price reaches a higher high, but the indicator fails to follow.
In a downtrend, positive divergence occurs when price reaches a lower low, yet the indicator does not reach a lower low.
For the most part, oscillator indicators and price trailing each other and move in the same direction.
However, when they start to drift apart, the current trade may consolidate or exhibit a reverse pattern. 

 

Parameters:

  • You can change all DMI Oscillator parameters:
    • DMI Oscillator length: The number of bars used to calculate the DMI Oscillator.
    • average type: The type of moving average to be used in calculations: simple, exponential, weighted, Wilder's, or Hull.
  • Length 1&2: Define the range of bars which are used to calculate the current High/Low and previous High/Low.
  • Percent: The difference current High/Low and previous High/Low.
     
  • DMI Oscillator_Percent: The difference between current DMI Oscillator and the DMI Oscillator value from previous High/Low.
  • Alert: provide both sound and message alert whenever a divergence is found. You can turn it on or off.
  • mode: Choose "Upper" to only plot signal arrows on price chart.
    Choose "lower" it will plot as a DMI Oscillator indicator with divergence signals.

 

 

 

 

 

 

 

Please note: in order to plot this indicator on both price chart and lower chart, you need to load it in two places. And set mode to "Upper" in Price chart and mode to "lower" in Lower chart. As shown in the following picture.

If you want the same signals on both charts, all parameters have to be consistent on both sides.

 

This indicator works in any time period and applicable for all securities(Stocks, Futures, Forex, Options,ETF, etc.).

When you use this indicator in minute chart, it's better to set "percent" less than 1, otherwise, lots of signals will be filtered.

 

If you want to add any feature to this indicator, please send us a Customization request.

 

How to use:

The purpose of divergence indicator is to point when price  trend are moving into  opposite direction.

Negative divergence:

First of all, we need to locate the recent High1 and its DMI Oscillator value within the given range(lenght1).
Secondly, we find the previous High2 and its DMI Oscillator value within the given range(lenght2).

Then we compare the ratio of these 2 Highs and DMI Oscillator values to determine if they meet the percentage you set.

For example, if you set "percent=3", then it will check if High1 is greater than High2 by 3%. If you set "DMI_percent=5" then it will check if DMI Oscillator 1 is less than DMI Oscillator 2 by 5%.

If both percent conditions are met, there will be a red arrow pointing downward.

Positive divergence:

The indicator will find the recent Low1 and its DMI Oscillator value within the given range(lenght1).
And then it will find the previous Low2 and its DMI Oscillator value within the given range(lenght2).

If you set "percent=1", then it will check if Low1 is less than Low2 by 1%. If you set "DMI_percent=5" then it will check if DMI Oscillator 1 is greater than DMI Oscillator 2 by 5%.

If both percent conditions are met, there will be a green arrow pointing upward.

Write a review

Your Name:


Your Review: Note: HTML is not translated!

Rating: Bad           Good

Enter the code in the box below:



Welcome to Patternsmart
Converting your indicator from one platform to another.

Custom Alert, Autotrader, Indicators, Scan, Screener, Strategy and Signals.


 

Copyright @ 2019 Patternsmart - All rights reserved


This website is for educational and informational purposes only and should not be considered a solicitation to buy or sell a futures contract or make any other type of investment decision. It's not recommended to use any single indicator as sole evaluation criteria. The companies and services listed on this website are not to be considered a recommendation and it is the reader's responsibility to evaluate any product, service, or company. patternsmart is not responsible for the accuracy or content of any product, service or company linked to on this website.

Futures trading contains substantial risk and is not for every investor.Please read the following risk disclosure before considering the trading of this product: Futures Risk Disclosure. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.

Trading stocks, options, futures and forex involves speculation, and the risk of loss can be substantial.Investor must consider all relevant risk factors, including their own personal financial situation, before trading. Trading foreign exchange on margin carries a high level of risk, as well as its own unique risk factors. Forex investments are subject to counter-party risk, as there is no central clearing organization for these transactions. Please read the following risk disclosure before considering the trading of this product: Forex Risk Disclosure. Spreads, Straddles, and other multiple-leg option strategies can entail substantial transaction costs, including multiple commissions, which may impact any potential return. Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Prior to trading options, you should carefully read Characteristics and Risks of Standardized Options.

patternsmart.com will not be held liable for the loss of money or any damage caused from relying on the information on this site. Any investment decision you make in your self-directed account is solely your responsibility.