Ethereum: Trading view vs Binance DMI calculation?

Here’s a draft article on calculating Ethereum directional movement indicators using the Binance DMI (Directional Movement Indicator) API:

Calculating Directional Movement Indicators for Ethereum

As an investor, understanding the trends and patterns of your cryptocurrency portfolio is crucial. One powerful tool in this arsenal is the Directional Movement Indicator (DMI), which helps identify the direction of price movement. In this article, we’ll explore how to calculate the DMI using the Binance API.

Understanding the 288 Values

To create a 5-minute trading view for Ethereum on Binance, you need to use 288 values: High, Open, Low, and Close. Here’s a brief overview of each value:

• High: The highest price level reached during a bar.

• Open: The lowest price level reached during a bar.

• Low: The lowest price level reached during a bar.

• Close

  : The highest price level reached during a bar.

Calculating the BSM (Balanced Order Signal)

Before diving into DMI, let’s start with the Basic Moving Average (BSM). A 12-period average of High and Low prices can be used to calculate the BSM. Here’s how:

• Fetch the High and Low values for each bar using the Binance API.

• Calculate the BSM by averaging the High and Low prices over a period (e.g., 12 bars).

• Use the BSM as a filter to select only high highs, low lows, and close closes.

Calculating the Aroon

Next, we’ll calculate the Average True Range (ATR) using the Alligator indicators from Alpha Vantage. This will help us identify the volatility of Ethereum’s price movements.

• Fetch all 288 values for each bar.

• Calculate the Average True Range by taking the average of the High-Low ranges.

• Use the ATR to filter out high highs, low lows, and close closes with high true ranges (i.e., high volatility).

Calculating the BSI (Balance Signal Indicator)

Now, let’s create a Balance Signal Indicator (BSI) by calculating the ratio of High to Low prices.

• Fetch all 288 values for each bar.

• Calculate the ratio of High to Low prices over a period (e.g., 12 bars).

• Use the BSI as an indicator to signal potential buy or sell opportunities based on high highs, low lows, and close closes with high ratios.

Calculating the RSI

Lastly, we’ll calculate the Relative Strength Index (RSI) using the High and Low values.

• Fetch all 288 values for each bar.

• Calculate the RSI by taking the average of the ratio of High to Low prices over a period (e.g., 14 days).

• Use the RSI as an additional indicator to signal potential buy or sell opportunities based on high highs, low lows, and close closes with low ratios.

Putting it all Together

To create your trading view, use the Binance API to fetch the calculated indicators for each bar:

“javascript

const axios = require('axios');

async function calculateDMI() {

// Fetch all 288 values for each bar

const apiResponse = await axios.get(

if (apiResponse.status !== 200) return;

const data = apiResponse.data;

const highValues = data.highestPrices.map((value, index) => ({ value }));

const openValues = data.openPrices.map((value, index) => ({ value }));

const lowValues = data.lowestPrices.map((value, index) => ({ value }));

const closeValues = data.closePrices.map((value, index) => ({ value }));

// Calculate BSM

const bsmValues = highValues.reduce((a, b) => a + b.value, 0) / bsmValues.length;

console.log(bsmValues);

// Calculate Aroon

const atrValues = closeValues.map((value, index) => {

if (index % 10 === 9 && value < lowValues[index - 1].value) return 100;

else if (index % 10 !== 0 && value > highValues[index – 1].value) return 50;

else if (index % 10 !== 9 && value < highValues[index - 1].