This technique was described by William Blau in his book "Momentum,
Direction and Divergence" (1995). His book focuses on three key aspects
of trading: momentum, direction and divergence. Blau, who was an electrical
engineer before becoming a trader, thoroughly examines the relationship between
price and momentum in step-by-step examples. From this grounding, he then looks
at the deficiencies in other oscillators and introduces some innovative techniques,
including a fresh twist on Stochastics. On directional issues, he analyzes the
intricacies of ADX and offers a unique approach to help define trending and
non-trending periods.
Directional Trend Index is an indicator similar to DM+ developed by Welles Wilder.
The DM+ (a part of Directional Movement System which includes both DM+ and
DM- indicators) indicator helps determine if a security is "trending." William
Blau added to it a zeroline, relative to which the indicator is deemed positive or
negative. A stable uptrend is a period when the DTI value is positive and rising, a
downtrend when it is negative and falling.
Direction and Divergence" (1995). His book focuses on three key aspects
of trading: momentum, direction and divergence. Blau, who was an electrical
engineer before becoming a trader, thoroughly examines the relationship between
price and momentum in step-by-step examples. From this grounding, he then looks
at the deficiencies in other oscillators and introduces some innovative techniques,
including a fresh twist on Stochastics. On directional issues, he analyzes the
intricacies of ADX and offers a unique approach to help define trending and
non-trending periods.
Directional Trend Index is an indicator similar to DM+ developed by Welles Wilder.
The DM+ (a part of Directional Movement System which includes both DM+ and
DM- indicators) indicator helps determine if a security is "trending." William
Blau added to it a zeroline, relative to which the indicator is deemed positive or
negative. A stable uptrend is a period when the DTI value is positive and rising, a
downtrend when it is negative and falling.
//////////////////////////////////////////////////////////// // Copyright by HPotter v1.0 18/04/2014 // This technique was described by William Blau in his book "Momentum, // Direction and Divergence" (1995). His book focuses on three key aspects // of trading: momentum, direction and divergence. Blau, who was an electrical // engineer before becoming a trader, thoroughly examines the relationship between // price and momentum in step-by-step examples. From this grounding, he then looks // at the deficiencies in other oscillators and introduces some innovative techniques, // including a fresh twist on Stochastics. On directional issues, he analyzes the // intricacies of ADX and offers a unique approach to help define trending and // non-trending periods. // Directional Trend Index is an indicator similar to DM+ developed by Welles Wilder. // The DM+ (a part of Directional Movement System which includes both DM+ and // DM- indicators) indicator helps determine if a security is "trending." William // Blau added to it a zeroline, relative to which the indicator is deemed positive or // negative. A stable uptrend is a period when the DTI value is positive and rising, a // downtrend when it is negative and falling. //////////////////////////////////////////////////////////// study(title="Directional Trend Index (DTI)", shorttitle="DTI") r = input(14, minval=1) s = input(10, minval=1) u = input(5, minval=1) OB = input(25, minval=1) OS = input(-25, maxval=-1) hline(0, color=green, linestyle=line) xHMU = iff(high - high[1] > 0, high - high[1], 0) xLMD = iff(low - low[1] < 0, -(low - low[1]), 0) xPrice = xHMU - xLMD xPriceAbs = abs(xPrice) xuXA = ema(ema(ema(xPrice, r),s),u) xuXAAbs = ema(ema(ema(xPriceAbs, r),s),u) Val1 = 100 * xuXA Val2 = xuXAAbs DTI = iff(Val2 != 0, Val1 / Val2, 0) plot(DTI, color=maroon, title="DTI") plot(OB, color=blue, title="OB") plot(OS, color=red, title="OS")