Equilibrium Points

Category: Indicators By: gabri Created: October 31, 2017, 8:45 AM
October 31, 2017, 8:45 AM
Indicators
4 Comments

Welles Wilder, the creator of ADX, was calling the crossing points between DI+ and DI- (Directional Indexes) equilibrium points. He was considering these points extremely important to determine the quality of the trend a commodity was undergoing.

This code draws a line on the price to show the distance between the price line and the Equilibrium Point of the day and allows an easier estimation of how much the highs or lows have to move in order to pierce the equilibrium point and cause an inversion of the trend as it is defined by the Directional Movement Indicator.

Blue skies.

//computation of 1-day delayed Directional Movement indicators
up=high[1]-high[2]
dw=low[2]-low[1]
if up>dw and up>=0 then
 plusdm=up
else
 plusdm=0
endif
if dw>up and dw>=0 then
 mindm=dw
else
 mindm=0
endif
dip=wilderaverage[14](plusdm)
dim=wilderaverage[14](mindm)
//computation future Directional Movement Indicator
if dip>dim then
 dipfut=(13*dip/14)+dip/14
 dimfut=14*(dipfut-(13*dim/14))
endif
if dim>dip then
 dimfut=(13*dim/14)+dim/14
 dipfut=14*(dimfut-(13*dip/14))
endif
if dip>dim then
 lin=low[1]-dimfut
else
 lin=high[1]+dipfut
endif
//return of data
return lin

Download
Filename: Equilibrium-points.itf
Downloads: 175
gabri Master
As an architect of digital worlds, my own description remains a mystery. Think of me as an undeclared variable, existing somewhere in the code.
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