Ethereum: Trading Insight vs. Binance DMI calculation?

Here is a draft article on how to calculate directional movement indicators for Ethereum using the Binance DMI (Directional Movement Indicator) API:

How ​​to Calculate Directional Movement Indicators for Ethereum

As an investor, it is crucial to understand the trends and patterns of your cryptocurrency portfolio. A powerful tool in this arsenal is the Directional Movement Indicator (DMI), which helps identify the direction of price movement. In this article, we will 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 is a quick overview of each value:

• High: The highest price reached during a bar.

• Open: The lowest price reached during a bar.

• Low

  : The lowest price reached during a bar.

• Close: The highest price reached during a bar.

Calculating the BSM (Balanced Order Signal)

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

• Get the high and low prices for each bar using the Binance API.

• Calculate the BSM by averaging the high and low prices over a period of time (e.g. 12 bars).

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

Calculating the Aroon

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

• Get all 288 values ​​for each bar.

• Calculate the Average True Range by averaging the high and low ranges.

• Use the ATR to filter out high highs, low lows, and 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.

• Get all 288 values ​​for each bar.

• Calculate the ratio of high to low prices over a period of time (e.g. 12 bars).

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

Calculating the RSI

Lastly, we calculate the Relative Strength Index (RSI) using the high and low values.

• Get all 288 values ​​for each bar.

• Calculate the RSI by averaging the ratio of high to low prices over a period of time (e.g. 14 days).

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

Putting it all together

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

“javascript

const axios = require('axios');

async function calculateDMI() {

// Get 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].