OPEN-SOURCE SCRIPT

Directional Flow Signals

Directional Flow Signals is a DMI-based trend direction indicator designed to highlight shifts in directional pressure directly on the price chart.

The indicator uses the Directional Movement Index system, comparing DI+ and DI- to determine which side of the market is currently dominant.

When DI+ is above DI-, candles are colored bullish.
When DI- is above DI+, candles are colored bearish.

A Long signal appears when directional control shifts from bearish to bullish.
A Short signal appears when directional control shifts from bullish to bearish.

This allows traders to quickly visualize changes in directional bias without needing to keep a separate DMI/ADX panel open.

Key features:

- Bullish and bearish candle coloring
- Long and Short signal labels
- DI+ / DI- crossover-based trend shifts
- Built-in alert conditions
- Adjustable DMI length and smoothing
- Custom candle colors

This tool can be useful for identifying directional transitions, trend bias changes, and possible momentum shifts when combined with support/resistance, volume, VWAP, market structure, or higher timeframe confirmation.

Important:
This indicator does not predict price movement and should not be used as a standalone trading system. Since the signals are based on DI+ and DI- crossovers, they may produce false signals during sideways or low-volatility market conditions.

Inputs:

Show BUY/SELL Signals:
Allows users to enable or disable Long and Short labels on the chart.

ADX Length:
Controls the lookback period used for the Directional Movement Index calculation.

ADX Smoothing:
Controls the smoothing applied to the ADX/DMI calculation.

Up Candle Color:
Sets the candle color when DI+ is stronger than DI-.

Down Candle Color:
Sets the candle color when DI- is stronger than DI+.

Directional Flow Signals is a visual trend-bias indicator based on the Directional Movement Index.

The script compares DI+ and DI- to determine whether bullish or bearish directional pressure is dominant. Candles are colored according to the active directional bias, and signal labels are displayed when the dominant side changes.

Signal logic:

Long Signal:
A Long signal is generated when DI+ becomes stronger than DI- after previously being below it.

Short Signal:
A Short signal is generated when DI- becomes stronger than DI+ after previously being below DI+.

The goal of this indicator is not to predict reversals, but to provide a clear visual representation of directional pressure shifts.

It is best used as a confirmation layer together with price structure, volume, VWAP, support/resistance, or higher timeframe trend analysis.

Limitations:

- Signals are based only on DI+ and DI- dominance.
- The ADX value is calculated but not used as a strength filter.
- False signals may occur in ranging or choppy markets.
- The indicator does not provide stop loss, take profit, or risk management levels.
- It should be used as a confirmation or visual bias tool, not as a complete trading system.

Mã nguồn mở

Theo đúng tinh thần TradingView, tác giả của tập lệnh này đã công bố nó dưới dạng mã nguồn mở, để các nhà giao dịch có thể xem xét và xác minh chức năng. Chúc mừng tác giả! Mặc dù bạn có thể sử dụng miễn phí, hãy nhớ rằng việc công bố lại mã phải tuân theo Nội quy.

Ty_yanse

Thông báo miễn trừ trách nhiệm

Thông tin và các ấn phẩm này không nhằm mục đích, và không cấu thành, lời khuyên hoặc khuyến nghị về tài chính, đầu tư, giao dịch hay các loại khác do TradingView cung cấp hoặc xác nhận. Đọc thêm tại Điều khoản Sử dụng.

Mã nguồn mở

Ty_yanse