Description
The DMI Reversal Alerts is a technical indicator based on crossovers of DMI Stochastic Extreme's Stoch plot with its simple moving average (SMA). It is used to identify all the changes in the DMI Stochastic.
According to Barbara Star's article "The DMI Stochastic", these crossovers might be too frequent to be used for initiating trades, however, the author suggests considering them as a warning of possible directional change.
Input Parameters
| Parameter | Description |
|---|---|
length
|
The number of bars with which the DMI oscillator is calculated. |
high low length
|
The period on which highest and lowest values of DMI oscillator are found. |
sum length
|
The period on which the sums of values for the DMI Stochastic Extreme are calculated. |
average length
|
The number of bars used for calculating the SMA. |
Plots
| Plot | Description |
|---|---|
Above
|
Crossovers of DMI Stochastic Extreme's Stoch plot above its SMA. |
Below
|
Crossovers of DMI Stochastic Extreme's Stoch plot below its SMA. |
Further Reading
1. "The DMI Stochastic" by Barbara Star, PhD. Technical Analysis of Stocks & Commodities, January 2013.
Example*
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.