OPEN-SOURCE SCRIPT
DPMO
Updated
The code adapted from Lazy Bear's code such that I have added the indicator on the chart
* Buy signal when lime
* Close buy when green
* Sell when red
* close sell when orange
* Buy signal when lime
* Close buy when green
* Sell when red
* close sell when orange
Release Notes
Title: "DecisionPoint Price Momentum Oscillator (DPMO) V5:Description:
This script is a custom implementation of the DecisionPoint Price Momentum Oscillator (DPMO), an effective momentum-based indicator. It is designed to help traders visualize momentum shifts in the market by plotting up and down triangles and generating alerts on these pivotal moments.
The indicator is based on the closing prices (`src`), and involves two levels of smoothing (`length1` and `length2`), as well as a signal smoothing parameter (`siglength`). The first level of smoothing is applied to the percentage difference between the current close and the previous close. The result is then further smoothed to calculate the PMO line. The signal line is an exponential moving average of the PMO line.
The DPMO values are used to plot up (green) and down (red) triangles on the chart. These triangles are plotted below and above the bars, respectively, to avoid obscuring the price action.
The up triangle is plotted when the DPMO line crosses above the zero line, indicating a positive shift in momentum, and the down triangle is plotted when the DPMO line crosses below the zero line, indicating a negative shift in momentum. This can be a useful tool for identifying potential buy and sell points.
The script also includes alerts for these momentum shifts. An alert is triggered when the DPMO line crosses above zero (indicating a positive momentum shift), and another alert is triggered when the DPMO line crosses below zero (indicating a negative momentum shift).
These alerts, titled 'Up Momentum Alert' and 'Down Momentum Alert', notify traders in real-time, enabling them to react promptly to changes in the market. This makes the DecisionPoint Price Momentum Oscillator a valuable tool for both short-term and long-term traders.
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
For guides on how to use the Aladdin indicator or how to buy it, please check joy-bangla.gitbook.io/aladdin/
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.