OPEN-SOURCE SCRIPT
Directional Strength and Momentum Index - Scoring Engine
█ OVERVIEW
Directional Strength and Momentum Index - Scoring Engine is an indicator designed to analyze market strength and directional bias.
It is a technical analysis tool inspired by the classic DMI. Unlike the standard approach based on DM+/DM− values calculated directly from high/low differences, this indicator uses an alternative methodology built on candle size relationships (body or full range), candle direction, and EMA smoothing. As a result, price impulses are weighted differently, allowing for a more flexible interpretation of trend phases, consolidation, and market volatility.
Directional Strength and Momentum Index - Scoring Engine is an advanced evolution of the earlier Directional Strength and Momentum Index version. The new release expands the original concept with a multi-factor scoring system, an additional signal confirmation layer (secondary confirmation), TP/SL management features, and an advanced analytical dashboard.
█ CONCEPTS
The indicator was designed as an expansion of the earlier, simpler DSMI version in order to fully utilize its analytical potential.
The added components do not change the core concept of the model, but extend it with additional analytical dimensions and greater flexibility in signal construction.
The expanded scoring system allows users to freely shape signal-generation logic by modifying weights, filters, and entry conditions, making the indicator adaptable to different trading styles and markets.
The introduction of secondary DSMI and secondary DS adds an additional confirmation layer that enables:
• better filtering of false signals
• evaluation of momentum consistency across multiple levels
• more precise differentiation between impulse and correction phases
As a result, the final version of the indicator becomes a multi-layered market strength and momentum analysis system, where each layer serves a distinct and complementary role.
DSMI Core
The main market strength index on a 0–100 scale.
• measures the current level of buying or selling dominance (market state)
• based on the relationship between cumulative bullish and bearish movement strength
• EMA-smoothed to reduce noise
• defines the core market regime (weak / moderate / strong)
• serves as the foundation of the entire scoring system
DSMI Core describes “where market strength currently is” (state / level).
Directional Strength (+DS / -DS)
A layer describing real-time market pressure.
• +DS = bullish movement strength
• -DS = bearish movement strength
• dependent on candle direction and size (body or full range)
• EMA-smoothed
• determines which side of the market currently dominates price expansion
DS describes the structure of buying/selling dominance within candle flow.
Momentum Layer
A layer describing the dynamics of market strength changes (DSMI slope / velocity).
• rising DSMI = accelerating dominance of one market side
• falling DSMI = weakening or fading trend strength
• secondary DSMI = additional confirmation of momentum changes
• DS changes indicate acceleration or weakening of impulse strength
The Momentum Layer describes “how market strength changes” (velocity / rate of change).
Scoring Engine
A point-based system evaluating the quality of potential trading signals.
Each component adds or subtracts points:
• trend strength (weak / moderate / strong DSMI regime)
• DSMI momentum (rising / falling confirmation)
• DS expansion (+DS / -DS growth)
• SMA alignment
• candle size relative to volatility
• extreme DS values (overextension)
• trend weakening (DSMI or DS weakening)
• secondary confirmation layer
The final result is a weighted score calculated separately for LONG and SHORT setups (0–100).
█ FEATURES
DSMI Parameters
• calculation source (Body Only / Full Range)
• DSMI signal length
• secondary DSMI length
DSMI Display
• main DSMI line (trend strength)
• optional secondary DSMI line
• color changes based on market direction
DS Lines
• +DS (buying pressure)
• -DS (selling pressure)
• secondary DS as confirmation
• strength relationship visualization (fill between lines)
Trend Strength Levels
• weak / moderate / strong
• defined by DSMI thresholds
• determine when scoring can activate signals
Neutral Zones
• neutral +DS / -DS range
• area of no clear market dominance
• filters directionless movement and low volatility
• configurable levels such as 40/60
• within this range, both the oscillator and candles may be colored gray (or another selected color) to indicate the absence of directional dominance, often associated with consolidation or low-activity phases
Extreme Zones
• extreme DS value levels
• visual overbought / oversold bands
• detection of excessive price expansion
• changing band levels affects the width of the area where scoring penalties are applied for entries into extreme zones
Scoring Signals
• LONG / SHORT signals generated by the scoring engine
• activated after exceeding a threshold
• candle direction filter
• signals represent movement quality, not automatic trade execution decisions
Scoring Weights
• trend strength
• momentum
• DS expansion
• SMA alignment
• candle size vs volatility
• penalties for weakening conditions and extremes
• secondary confirmation
█ APPLICATIONS
1. Trend Following
The primary application is trading in trending market environments where DSMI and DS maintain directional consistency without chaotic dominance shifts.
The key is observing whether DSMI and +DS / -DS move in the same direction and maintain matching color structure. Such conditions indicate stable market-side dominance and may be used as:
• a trend-quality filter
• confirmation for signals from other systems
• context for entries based on price action and market structure
2. Momentum Trading
The system helps evaluate whether a move is genuinely gaining strength or merely producing corrective fluctuations.
• rising DSMI + rising DS = increasing momentum
• falling DSMI + falling DS = fading movement strength
This makes it easier to distinguish impulsive moves from corrections.
3. Consolidation Filtering
With neutral zones configured, for example at 40/60:
• DSMI remains within the middle range
• +DS and -DS stay balanced
• no clear market dominance exists
Under such conditions:
• the market often enters consolidation
• volatility becomes limited
• scoring signals naturally become less frequent and more selective
4. Scoring-Based Entries (Primary Use Case)
Entries are generated exclusively by the scoring engine, but their interpretation should always consider overall market context.
Signals should be filtered using:
• support and resistance levels
• Fibonacci zones
• pivot points
• order blocks
• market structure and liquidity
• potential exhaustion after impulsive moves
The best entries occur when:
• the scoring value is high
• there is no nearby major support/resistance zone
• other tools do not indicate movement exhaustion
█ NOTES
The indicator performs best after DSMI, DS, and scoring parameters are adjusted to fit the user’s strategy and market conditions.
It is recommended to use the indicator together with other technical analysis tools such as Fibonacci levels, order blocks, pivot points, and RSI.
Directional Strength and Momentum Index - Scoring Engine is an indicator designed to analyze market strength and directional bias.
It is a technical analysis tool inspired by the classic DMI. Unlike the standard approach based on DM+/DM− values calculated directly from high/low differences, this indicator uses an alternative methodology built on candle size relationships (body or full range), candle direction, and EMA smoothing. As a result, price impulses are weighted differently, allowing for a more flexible interpretation of trend phases, consolidation, and market volatility.
Directional Strength and Momentum Index - Scoring Engine is an advanced evolution of the earlier Directional Strength and Momentum Index version. The new release expands the original concept with a multi-factor scoring system, an additional signal confirmation layer (secondary confirmation), TP/SL management features, and an advanced analytical dashboard.
█ CONCEPTS
The indicator was designed as an expansion of the earlier, simpler DSMI version in order to fully utilize its analytical potential.
The added components do not change the core concept of the model, but extend it with additional analytical dimensions and greater flexibility in signal construction.
The expanded scoring system allows users to freely shape signal-generation logic by modifying weights, filters, and entry conditions, making the indicator adaptable to different trading styles and markets.
The introduction of secondary DSMI and secondary DS adds an additional confirmation layer that enables:
• better filtering of false signals
• evaluation of momentum consistency across multiple levels
• more precise differentiation between impulse and correction phases
As a result, the final version of the indicator becomes a multi-layered market strength and momentum analysis system, where each layer serves a distinct and complementary role.
DSMI Core
The main market strength index on a 0–100 scale.
• measures the current level of buying or selling dominance (market state)
• based on the relationship between cumulative bullish and bearish movement strength
• EMA-smoothed to reduce noise
• defines the core market regime (weak / moderate / strong)
• serves as the foundation of the entire scoring system
DSMI Core describes “where market strength currently is” (state / level).
Directional Strength (+DS / -DS)
A layer describing real-time market pressure.
• +DS = bullish movement strength
• -DS = bearish movement strength
• dependent on candle direction and size (body or full range)
• EMA-smoothed
• determines which side of the market currently dominates price expansion
DS describes the structure of buying/selling dominance within candle flow.
Momentum Layer
A layer describing the dynamics of market strength changes (DSMI slope / velocity).
• rising DSMI = accelerating dominance of one market side
• falling DSMI = weakening or fading trend strength
• secondary DSMI = additional confirmation of momentum changes
• DS changes indicate acceleration or weakening of impulse strength
The Momentum Layer describes “how market strength changes” (velocity / rate of change).
Scoring Engine
A point-based system evaluating the quality of potential trading signals.
Each component adds or subtracts points:
• trend strength (weak / moderate / strong DSMI regime)
• DSMI momentum (rising / falling confirmation)
• DS expansion (+DS / -DS growth)
• SMA alignment
• candle size relative to volatility
• extreme DS values (overextension)
• trend weakening (DSMI or DS weakening)
• secondary confirmation layer
The final result is a weighted score calculated separately for LONG and SHORT setups (0–100).
█ FEATURES
DSMI Parameters
• calculation source (Body Only / Full Range)
• DSMI signal length
• secondary DSMI length
DSMI Display
• main DSMI line (trend strength)
• optional secondary DSMI line
• color changes based on market direction
DS Lines
• +DS (buying pressure)
• -DS (selling pressure)
• secondary DS as confirmation
• strength relationship visualization (fill between lines)
Trend Strength Levels
• weak / moderate / strong
• defined by DSMI thresholds
• determine when scoring can activate signals
Neutral Zones
• neutral +DS / -DS range
• area of no clear market dominance
• filters directionless movement and low volatility
• configurable levels such as 40/60
• within this range, both the oscillator and candles may be colored gray (or another selected color) to indicate the absence of directional dominance, often associated with consolidation or low-activity phases
Extreme Zones
• extreme DS value levels
• visual overbought / oversold bands
• detection of excessive price expansion
• changing band levels affects the width of the area where scoring penalties are applied for entries into extreme zones
Scoring Signals
• LONG / SHORT signals generated by the scoring engine
• activated after exceeding a threshold
• candle direction filter
• signals represent movement quality, not automatic trade execution decisions
Scoring Weights
• trend strength
• momentum
• DS expansion
• SMA alignment
• candle size vs volatility
• penalties for weakening conditions and extremes
• secondary confirmation
█ APPLICATIONS
1. Trend Following
The primary application is trading in trending market environments where DSMI and DS maintain directional consistency without chaotic dominance shifts.
The key is observing whether DSMI and +DS / -DS move in the same direction and maintain matching color structure. Such conditions indicate stable market-side dominance and may be used as:
• a trend-quality filter
• confirmation for signals from other systems
• context for entries based on price action and market structure
2. Momentum Trading
The system helps evaluate whether a move is genuinely gaining strength or merely producing corrective fluctuations.
• rising DSMI + rising DS = increasing momentum
• falling DSMI + falling DS = fading movement strength
This makes it easier to distinguish impulsive moves from corrections.
3. Consolidation Filtering
With neutral zones configured, for example at 40/60:
• DSMI remains within the middle range
• +DS and -DS stay balanced
• no clear market dominance exists
Under such conditions:
• the market often enters consolidation
• volatility becomes limited
• scoring signals naturally become less frequent and more selective
4. Scoring-Based Entries (Primary Use Case)
Entries are generated exclusively by the scoring engine, but their interpretation should always consider overall market context.
Signals should be filtered using:
• support and resistance levels
• Fibonacci zones
• pivot points
• order blocks
• market structure and liquidity
• potential exhaustion after impulsive moves
The best entries occur when:
• the scoring value is high
• there is no nearby major support/resistance zone
• other tools do not indicate movement exhaustion
█ NOTES
The indicator performs best after DSMI, DS, and scoring parameters are adjusted to fit the user’s strategy and market conditions.
It is recommended to use the indicator together with other technical analysis tools such as Fibonacci levels, order blocks, pivot points, and RSI.
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สคริปต์แบบโอเพนซอร์ส
ด้วยเจตนารมณ์หลักของ TradingView ผู้สร้างสคริปต์นี้ได้ทำให้เป็นโอเพนซอร์ส เพื่อให้เทรดเดอร์สามารถตรวจสอบและยืนยันฟังก์ชันการทำงานของมันได้ ขอชื่นชมผู้เขียน! แม้ว่าคุณจะใช้งานได้ฟรี แต่โปรดจำไว้ว่าการเผยแพร่โค้ดซ้ำจะต้องเป็นไปตาม กฎระเบียบการใช้งาน ของเรา
คำจำกัดสิทธิ์ความรับผิดชอบ
ข้อมูลและบทความไม่ได้มีวัตถุประสงค์เพื่อก่อให้เกิดกิจกรรมทางการเงิน, การลงทุน, การซื้อขาย, ข้อเสนอแนะ หรือคำแนะนำประเภทอื่น ๆ ที่ให้หรือรับรองโดย TradingView อ่านเพิ่มเติมใน ข้อกำหนดการใช้งาน