Directional Movement Histogram

What the Indicator Is

Your script builds a Directional Movement Histogram. This is a visual tool that shows whether buyers (bulls) or sellers (bears) are currently stronger in the market.

How It Works in Simple Terms

It looks at how much prices are moving upward versus downward over a chosen period (default is 14 bars).

From that, it calculates two measures:

+DI (Directional Indicator Plus): strength of upward moves.

–DI (Directional Indicator Minus): strength of downward moves.

Then it compares the two by subtracting one from the other.

If the result is positive, it means upward strength is greater.

If the result is negative, it means downward strength is greater.

What You See on the Chart

The script plots a histogram (bar chart).

Blue bars appear when upward strength dominates (bullish).

Red bars appear when downward strength dominates (bearish).

The height of the bars shows how strong the dominance is.

Why It’s Useful

Instead of looking at two separate lines (+DI and –DI), you get a single, easy‑to‑read histogram.

It quickly tells you who’s in control:

Blue = buyers are stronger.

Red = sellers are stronger.

This can help in spotting shifts in market momentum and potential trend changes.