DTDB Indicator

Creator: Definedge

The DTDB indicator is a point-and-figure chart indicator developed by Prashant Shah.

The indicator is designed using the X, O, and vertical column properties of the Point & Figure chart.

The DTDB Zone Indicator provides a measure of bullish and bearish momentum. However, no statistical calculations are applied such as summation, average, or multiplication. It calculates it by looking at the bullish and bearish points in the price pattern.

There are two basic swing breakout patterns on Point & Figure charts: double top buy and double bottom sell.

By using the indicator, the number of Double Top buy patterns and the number of Double Bottom sell patterns in the price pattern are calculated. The difference between them is displayed below the chart.

In the DTDB indicator, the green zone shows that the bullish swing breakouts (double top buy patterns) outnumber the bearish swing breakouts (double bottom sell patterns).

In the green DTDB zone, the bullish breakouts outnumber the bearish breakouts, suggesting that the trend is bullish. The DTDB in the bearish zone indicates that there are more bearish breakouts than bullish breakouts, thus indicating a bearish trend.

The indicator table value in TradePoint & RZone also provides you with a list of all values of this indicator for any group of stocks. This will allow you to compare the readings of this indicator across different stocks.

This indicator is also available in the System Builder of RZone & TradePoint. Using the system builder, you can develop various strategies based on the different conditions already present in this indicator. Additionally, it can be used with other indicators or price patterns to develop effective trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.