DMI

When Directional Movement Index (DMI) is used in conjunction with ADX, the two become an oscillating indicator that shows the strength of a trend. Traders will use other indicators to create trade signals and determine the validity of the signals with DMI and ADX readings. A down trending market will be reflected by a DMI that is trading above the DMI +. In the example below, there is a powerful downtrend with an ADX reading of 54.61. Throughout the course of the downtrend, the DMI- was trading above the DMI+.


DMI
previous 1 2 3 4 5 6 7 next