About the Powerful DMI Oscillator Indicator
The Powerful DMI Oscillator for MT4 merges the Directional Movement Index with oscillator smoothing.
It helps traders spot both trend strength and shifts in directional momentum.
It offers clear signals for when the trend may be accelerating or weakening.
The tool includes divergence detection, signal lines, and customizable filters to adapt to your style.
Finding buy and sell trade opportunities is easy with the DMI Oscillator:
- Buy the currency pair as soon as the oscillator crosses back above the 0.00 line.
- Sell the currency pairs as soon as the oscillator crosses back below the 0.00 line.
Free Download
Download the “dmi.mq4” indicator for MT4
Key Features
- Directional Movement Index (DMI) based readings (DI+, DI-, ADX) combined with smoothed oscillator output.
- Signal line crossovers for entry and exit cues.
- Customizable parameters: smoothing periods, threshold levels, signal line settings.
Indicator Example Chart (EUR/USD H1)
Below, you can see how the DMI Oscillator MT4 indicator works when applied to the chart.
The DMI Oscillator WAJDYSS Ichimoku MT4 Strategy
This strategy combines the Powerful DMI Oscillator Indicator with the WAJDYSS Ichimoku Forex Scalper Indicator to create a dynamic and highly filtered trading system.
The Powerful DMI Oscillator acts as a primary filter, confirming the direction and strength of the trend.
The WAJDYSS Ichimoku Scalper is a faster-acting indicator that provides a precise, low-lag entry signal.
By using the DMI to confirm the overall market bias and the Ichimoku Scalper for your entries, you can filter out many false signals and improve the quality of your trades.
This system is designed for scalping and day trading and is particularly effective on time frames like M5 and M15.
Buy Entry Rules
- The Powerful DMI Oscillator is in a bullish state (e.g., above the zero line), confirming an uptrend.
- The WAJDYSS Ichimoku Scalper indicator provides a green buy signal.
- Stop Loss: Place your stop loss just below the recent swing low or below the Ichimoku Scalper line.
- Take Profit: Aim for a fixed target of 10-15 pips, or exit when the WAJDYSS Ichimoku Scalper provides an opposing sell signal.
Sell Entry Rules
- The Powerful DMI Oscillator is in a bearish state (e.g., below the zero line), confirming a downtrend.
- The WAJDYSS Ichimoku Scalper indicator provides a red sell signal.
- Stop Loss: Place your stop loss just above the recent swing high or above the Ichimoku Scalper line.
- Take Profit: Aim for a fixed target of 10-15 pips, or exit when the WAJDYSS Ichimoku Scalper provides an opposing buy signal.
Advantages
- Filtered Signals: The strategy uses the DMI Oscillator as a strong filter to avoid trading against the trend, which is a common pitfall for scalping systems.
- High-Quality Entries: By combining a direct signal with a momentum confirmation, you can enter trades with a higher probability of success.
- Clear and Concise: The signals are visually easy to follow, making this system accessible to both new and experienced traders.
Drawbacks
- Requires Fast Execution: As a scalping strategy, it requires quick decision-making and execution. Delays can result in missing the optimal entry or exit point.
- Limited Opportunities: You must wait for the exact alignment of both indicators. This can mean fewer trading opportunities compared to an unfiltered system.
Case Studies
Case Study 1: Buy Trade
On an M5 chart for EUR/JPY, the Powerful DMI Oscillator was trending strongly above the zero line, indicating a clear uptrend.
Concurrently, the WAJDYSS Ichimoku Scalper provided a buy signal.
A buy trade was entered with a stop loss placed below the recent swing low.
The price quickly moved up, hitting the 15-pip take-profit target within minutes, demonstrating the system’s effectiveness.
Case Study 2: Sell Trade
On an M15 chart for GBP/USD, the Powerful DMI Oscillator was trending strongly below the zero line, confirming a downtrend.
At the same time, the WAJDYSS Ichimoku Scalper gave a sell signal.
A sell trade was opened with a stop loss placed above the previous swing high.
The price dropped, and the trade was exited for a 20-pip profit when the WAJDYSS Ichimoku Scalper began to show a buy signal, indicating a loss of bearish momentum.
Strategy Tips
- Confirm the Signal: Always ensure both indicators are in full agreement before taking a trade. Never enter a trade if one indicator shows a buy and the other shows a sell.
- Practice on Demo: Before using this strategy with real money, practice on a demo account to get a feel for the speed and discipline required for scalping.
Download Now
Download the “dmi.mq4” indicator for Metatrader 4
Indicator Specifications
| Specification | Details |
|---|---|
| Platform | MetaTrader 4 (MT4) |
| Timeframes | All timeframes; H1, H4, Daily recommended |
| Inputs |
|
| File | Powerful_DMI_Oscillator.ex4 |
| License | Free download — personal use only |
FAQ
1. Does the Powerful DMI Oscillator repaint or give late signals?
It does not repaint on closed candles.
Because smoothing and ADX are used, there is always some lag; divergence helps compensate by giving an early warning, and waiting for the closing of signal crossover reduces false entries.
2. Can this be used in range-bound markets?
Yes, but with caution. In ranges, ADX tends to fall, and crossovers/divergences may generate sideways noise.
3. How do I adjust during high volatility or major news?
In volatile times, widen stops, reduce trade size, and possibly require more bars for confirmation.
Or switch off divergence alerts temporarily. Avoid entering trades at the height of news spikes.
Summary
The Powerful DMI Oscillator is a potent tool when used correctly — blending trend strength (ADX), directional readings, divergence, and crossover signals.
Strategy tip: trade only when the trend is confirmed (e.g., EMA200 agrees), enter on bar close, set stop loss beyond swing, target next structure, aim for R:R of at least 1:2.
Use across timeframes to manage risk and improve consistency.
