Directional Movement

Directional Movement Interpretation:

The DI+ measures upward movement. The DI- measures downward movement. A buy opportunity may appear when DI+ crosses above DI- and a sell signal may appear when DI+ crosses below DI-.

These signals are mostly valid when there is a trend. ADX should thus be higher than a certain figure.

Directional Movement Calculation:

DI+=DM+/TR DI-=DM-TR TR=max[abs(highest-lowest);abs(highest-close day before);abs(lowest-close day before] DM+=max(0;highest-highest day before) DM-=(0;lowest day before-lowest)

The parameter measures the number of days needed to smooth both lines using the moving average method. In histogram mode, the bars are DI+ minus DI-.

Return from Directional Movement to Using Indicators

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