Directional Deviation Index (DDI)

14 Apr

Directional Deviation Index (DDI) is a streamlined, adaptive indicator for analyzing market cycles, detecting trend direction, and gauging momentum. By measuring how far price deviates from a smoothed average, the DDI adapts dynamically to both bullish and bearish conditions.

Key Features:

• Unified Smoothing: Choose SMA or EMA for consistent, predictable signals.
  
• Log Scale: Focus on percentage-based moves—ideal for volatile or higher-priced assets.
  
• Adaptive Trend Levels: Auto-adjust uptrend/downtrend thresholds based on market volatility.
  
• Momentum Visualization: Transparent color fills (green for uptrends, red for downtrends) that intensify with stronger deviations.
  
• Customizable Sensitivity: Fine-tune uptrend and downtrend settings to suit any trading style.
  
• Simple Alerts & Status Line: Get notified on key crossovers and track real-time price without chart clutter.
  

Comparison to Similar Indicators:

• Bollinger Bands: Both use deviations from a moving average, but the DDI emphasizes directional momentum and adaptive threshold levels rather than fixed bands.
  
• RSI/Stochastics: While these oscillators focus on overbought or oversold conditions, the DDI tracks how far price strays from its average, giving a clearer picture of trend strength.
  
• MACD: MACD is built on EMA crossovers, whereas the DDI highlights deviations from a mean and adapts more directly to volatility changes.
  

Use the DDI to identify trend strength, spot potential reversals, and monitor evolving market conditions across stocks, crypto, forex, and beyond. It’s a versatile yet concise tool for traders seeking faster, more confident decisions.

16 Apr

Nota Keluaran

Updated Description:

Directional Deviation Index (DDI)

Directional Deviation Index (DDI) is a technical indicator designed from the ground up for analyzing market cycles, detecting trend direction, and gauging momentum. By measuring how far price deviates from its dynamically smoothed average, DDI offers traders clear insights into market behavior and momentum.


Features:

• Primary DDI Line: Typically utilizes a longer smoothing period to provide a stable view of the overall trend.
  
• Offset DDI Line: By default, uses a shorter smoothing period to present a more reactive perspective, helping to confirm trends and catch short-term market movements.
  
• Smoothing Options: Choose between SMA or EMA for calculating smoothing. This flexibility is helpful for adapting to various market conditions, time intervals, and trading strategies.
  
• Logarithmic Calculations: Emphasize percentage-based price moves—ideal for assets with higher volatility or varied price scales. (On by default but can be turned off to view linear scale.)
  
• Visualize Trends: Adjust uptrend and downtrend thresholds dynamically based on market volatility, with visual fills that highlight the strength of momentum.
  
• Customizable Sensitivity: Fine-tune both uptrend and downtrend visual settings.
  
• Integrated Alerts & Price Display: Stay informed with real-time alerts on key crossovers and view current price data directly on the chart.
  

Comparison to Similar Tools:

• Bollinger Bands: Unlike Bollinger Bands’ fixed channels based on standard deviation, DDI adapts its thresholds based on actual market volatility while emphasizing directional momentum.
  
• RSI/Stochastics: While these oscillators are geared toward identifying overbought or oversold conditions, DDI measures the extent of price divergence from a dynamic average, offering a more nuanced view of trend strength.
  
• MACD: Whereas MACD relies on EMA crossovers to indicate momentum shifts, DDI highlights deviations from a mean and leverages its dual-line approach to deliver both stable and reactive trend signals.
  
• Average Directional Index (ADX): Focuses on overall trend strength without explicitly indicating trend direction. In contrast, DDI provides clear directional insights along with volatility-based cues.
  
• Keltner Channels: Use ATR-based calculations to form channels around a moving average. While they focus on volatility, DDI offers more direct signals of directional deviation.
  
• Ichimoku Cloud: Provides a comprehensive view of trend direction, momentum, and support/resistance through multiple moving averages. However, its complexity contrasts with DDI’s straightforward, dual-line design.
  

Ideal for stocks, crypto, forex, and beyond, DDI is a versatile tool that equips traders with the insights needed to assess trend strength, spot potential reversals, and make more confident, timely trading decisions.

16 Apr

Nota Keluaran

Updated default values

25 Apr

Nota Keluaran

How it Works:

The Directional Deviation Index (DDI) calculates the difference between the asset’s average price (the midpoint of open and close) and a dynamically smoothed moving average of that average price. Users can choose either a simple moving average (SMA) or exponential moving average (EMA) for smoothing. If enabled, prices are log-transformed before smoothing to better represent percentage-based price movements.

The primary DDI line uses a longer smoothing period to capture broader trends, while an optional offset DDI line with shorter smoothing provides more reactive signals to help confirm trend changes.

To visualize trends and potential reversals, two dynamic thresholds are plotted:

• Uptrend Level (Green Line): Marks the upper boundary of normal deviation, scaled relative to recent volatility. When the DDI rises above this level, it may indicate strengthening bullish momentum.
  
• Downtrend Level (Red Line): Marks the lower boundary, similarly scaled. When the DDI falls below this level, it may signal strengthening bearish momentum.
  

These thresholds are adaptive — calculated by adding or subtracting a multiple of the mean absolute deviation to the baseline smoothed deviation — allowing the indicator to adjust naturally to changes in market volatility.

26 Apr

Nota Keluaran

Updated defaults and demo chart.

26 Apr

Nota Keluaran

Updated Chart