Market Direction Indicator (MDI), by Donald Lambert, is an extension of simple moving average cross over systems. Series of price cross over points are determined to derive MDI.
Note that the short/long lengths will differ between instruments. They need to be tuned properly.
I have added an option to specify a "cutoff" parameter. When MDI is in the cutoff zone (-/+ cutoff), bars are colored gray. Set this to zero to turn off cutoffs.
Other options:
- OverlayMode: Enable this to color bars. MDI values are not plotted. If unchecked, MDI default rendering mode is Histogram mode.
- ShowBelowZero: Plots the negative values below zero (Oscillator mode)
Use "MDI" and "ZeroLine" for setting up alerts. Make sure MDI is in OscillatorMode.
Master list of all my indicators:
docs.google.com...ByMEvm5MLo/edit?usp=sharin...
Note that the short/long lengths will differ between instruments. They need to be tuned properly.
I have added an option to specify a "cutoff" parameter. When MDI is in the cutoff zone (-/+ cutoff), bars are colored gray. Set this to zero to turn off cutoffs.
Other options:
- OverlayMode: Enable this to color bars. MDI values are not plotted. If unchecked, MDI default rendering mode is Histogram mode.
- ShowBelowZero: Plots the negative values below zero (Oscillator mode)
Use "MDI" and "ZeroLine" for setting up alerts. Make sure MDI is in OscillatorMode.
Master list of all my indicators:
docs.google.com...ByMEvm5MLo/edit?usp=sharin...
List of my free indicators: bit.ly/1LQaPK8
List of my indicators at Appstore: blog.tradingview.com/?p=970
List of my indicators at Appstore: blog.tradingview.com/?p=970
//
// @author LazyBear
// List of all my indicators:
// https://docs.google.com/document/d/15AGCufJZ8CIUvwFJ9W-IKns88gkWOKBCvByMEvm5MLo/edit?usp=sharing
//
study("Market Direction Indicator [LazyBear]", shorttitle="MDI_LB")
src=close
lenMA1=input(13, title="Short Length"), lenMA2=input(55, title="Long Length")
cutoff=input(2, title="No-trend cutoff")
sbz=input(false, title="Show Below Zero")
om=input(false, title="Enable overlay mode")
calc_cp2(src, len1, len2) =>
(len1*(sum(src, len2-1)) - len2*(sum(src, len1-1))) / (len2-len1)
cp2=calc_cp2(src, lenMA1, lenMA2)
mdi=100*(nz(cp2[1]) - cp2)/((src+src[1])/2)
mdic=mdi<-cutoff?(mdi<mdi[1]?red:orange):mdi>cutoff?(mdi>mdi[1]?green:lime):gray
plot(om ? na : 0, color=gray, title="ZeroLine"), plot(om ? na : sbz ? mdi : abs(mdi), style=columns, color=mdic, linewidth=3, title="MDI")
barcolor(om ? mdic:na)