We made a simple, but effective indicator based on moving averages and momentum.
Math of DSI:
Source: Open / Close / Medium
– Take the EMA Length Average
– Average the EMA Length
– DoubleStoch Average #2 of the average of the EMA Average
Source – This tells which value to chose in the calculation of the DSI.
Length is the starting length. Then we average the average and then average it again.
We also show an option for the cycle count and breakout lines.