DVI BandsA new idea of mine that I am presently experimenting on for my trades.
The DVI bands is based on my previously published DVI script:
The Directional Volume Index (DVI) is defined as follows:
DVI = VWMA (len1) - SMA (len2), where by default, len1==len2
The position of the DVI above/below the current price provides volume confirmation of the direction of the price trend.
The magnitude of the DVI above/below the current price provides the volume confirmation of the strength of the price trend.
The stdev band is derived from the DVI where:
The DVI piercing the Stdev boundary suggests a significant move in the corresponding direction.
Tightening of the DVI-Stdev bands can suggest the possible incoming of major move ahead.
The novel aspects and principles of this indicator and this source code are the property of © cybernetwork.
Directionalvolumeindex
Directional Volume IndexA new idea of mine that I am presently experimenting on for my trades.
The Directional Volume Index (DVI) is defined as follows:
DVI = VWMA(len1) - SMA(len2), where by default, len1==len2
The sign of the DVI provides volume confirmation of the direction of the price trend.
The magnitude of the DVI provides the volume confirmation of the strength of the price trend.
The novel aspects and principles of this indicator and this source code are the property of © cybernetwork.
This indicator and script is free for the TV community to use.
