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.
According to the rules described by Barbara Star in her article "The DMI Stochastic", the following market conditions can be predicted:
||The number of bars with which the DI+ and DI- components are calculated.|
||Defines whether or not to color price plot according to respective oscillator values (red for negative, green for positive).|
||The DMI Oscillator line plot.|
||The DMI Oscillator histogram plot.|
||The zero level.|
1. "The DMI Stochastic" by Barbara Star, PhD. Technical Analysis of Stocks & Commodities, January 2013.
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.