Displacement Intelligence Channel (DIC) @darshakssc

The Displacement Intelligence Channel (DIC) is a clean, minimal, non-repainting analytical tool designed to help traders observe how price behaves around its dynamic equilibrium.
It does not generate buy/sell signals, does not predict future price movement, and should not be interpreted as financial advice.
All calculations are based strictly on confirmed historical bars.

⭐ What This Indicator Does
Price constantly fluctuates between expansion (large moves) and compression (small moves).
The DIC analyzes these changes through:

• Displacement (how far price moves per bar)
  
• ATR response (how volatility reacts over time)
  
• Dynamic width calculation (channel widens or tightens as volatility changes)
  
• EMA-based core midline (a smooth equilibrium reference)
  

The result is a smart two-line channel that adapts to market conditions without cluttering the chart.

This is NOT a fair value gap, moving average ribbon, or premium/discount model.
It is a purely mathematical displacement-ATR engine.

⭐ How It Works
The indicator builds three elements:

1. Intelligence Midline
A smooth EMA that acts as the channel’s core “equilibrium.”
It gives a stable reference of where price is gravitating during the current session or trend.

2. Adaptive Upper Boundary
Calculated using displacement + ATR.
When volatility increases, the channel expands outward.
When volatility compresses, the channel tightens.

3. Adaptive Lower Boundary
Mirrors the upper boundary.
Also expands and contracts based on market conditions.

All lines update only on confirmed bar closes, keeping the script non-repainting.

⭐ What to Look For (Purely Analytical)
This indicator does not imply trend continuation, reversal, or breakout.
Instead, here’s what traders typically observe:
1. Price Reactions Around the Midline

• Price often oscillates around the midline during equilibrium phases.
  
• Strong deviation from the midline highlights expansion or momentum phases.
  

2. Channel Expansion / Contraction

• Wider channel → increased volatility, displacement, and uncertainty
  
• Tighter channel → compression and calm conditions

Traders may use this for context only — not for decision-making.

3. Respect of Channel Boundary
When market structure respects the upper/lower channel lines, it simply indicates volatility boundaries, not overbought/oversold conditions.

⭐ How to Add This Indicator

1. Open TradingView
   
2. Select any chart
   
3. Click Indicators → Invite-Only Scripts / My Scripts
   
4. Choose “Displacement Intelligence Channel (DIC)”
   
5. The channel will appear automatically on the chart
   

⭐ Recommended Settings (Optional)
These settings do not change signals (because the indicator has none).
They only adjust sensitivity:

• Center EMA Length (default 34)

Smoother or faster midline

• Displacement Lookback (default 21)

Controls how much recent displacement affects width

• ATR Lookback (default 21)

Governs how volatility is interpreted

• Min/Max Multipliers

Limits how tight or wide the channel can expand
Adjust them cautiously for different timeframes or asset classes.

⭐ Important Notes

• This tool is non-repainting
  
• It does not use future data
  
• It does not repaint previous channel widths
  
• It follows TradingView House Rules
  
• It contains no signals, no alerts, and no predictions
  

The DIC is designed for visual context only and should be used as an analytical overlay, not as a stand-alone decision tool.

⭐ Disclaimer
This script is strictly for informational and educational purposes only.
It does not provide or imply any trading signals, financial advice, or expected outcomes.
Always do your own research and consult a licensed financial professional before making trading decisions.