DSL DMI Oscillator is an indicator designed for trend trading. Its calculations are aimed at determining the direction and strength of the current trend, which in turn allows determining the moment of opening a trade. It is displayed in the lower window of the price chart in the form of three lines: the main and two signal lines, which, under certain market conditions, intersecting with each other, change color and direction, as well as their location relative to the set signal level. The values of these indicator lines serve to determine the current market movement and trade during this period.
The choice of a trading timeframe and currency pair when trading using the DSL DMI Oscillator indicator does not matter.
The indicator settings include the Input Parameters section, which affects its technical operation, the Colors section, which is responsible for its visualization, and the Levels section, with the help of which signal levels are added to the indicator window.
-DMI period - value of the DMI indicator calculation period. The default value is 14.
-DMI smoothing method - the type of smoothing of the indicator values. By default, it has the Smoothed MA value.
-Smoothing period (<=1 for no smoothing) - indicator calculation smoothing period. Default value is 0, if <=1 is selected, smoothing is not applied.
-Smoothing method - type of smoothing calculations. By default, it is set to Exponential moving average.
-Signal period - period of the signal line of the indicator. The default value is 9.0.
To open a certain trade using the DSL DMI Oscillator indicator, it should be taken into account the direction of the current market trend. For this, in turn, the value of the indicator is taken into account, namely the color of the main line, its intersection with the signal lines and their general direction. If the current market is upward, buy trades are opened, if the trend is downward, sell trades. When the trend changes, trades are closed.
Signal for Buy trades:
- The main line of the indicator has a color with a growth value and moves up, being above the signal lines.
Upon receipt of a combination of such conditions on a signal candle, a buy trade may be opened, due to the presence of an upward trend. Close the trade and consider opening a new one should be when the current trend changes, namely, when the opposite conditions are received from the indicator.
Signal for Sell trades:
- The main line of the indicator intersects with the signal lines, being located below them. In this case, the line has a color with a falling value.
A sell trade can be opened immediately upon receipt of such conditions on a signal candle. At this moment, a downward trend is determined in the market. When it changes, namely at the moment of receiving the return conditions from the indicator the current trade should be closed and a new one considered to be opened.
The DSL DMI Oscillator indicator is a very effective trading algorithm that allows you to trade during a certain market trend. Although the indicator is easy to use, preliminary practice on a demo account is recommended before using it on a real deposit.