![]() ![]() ![]() Not a recommendation of a specific security or investment strategy.ĭo Not Sell or Share My Personal Information The type of moving average to be used in calculations: simple, exponential, weighted, Wilder's, or Hull. The number of bars used to calculate DI+, DI-, and ADX. ADX is used for confirmation: trend indications are more likely to be correct if ADX is rising and its values are above 50. DI+ crossing above the DI- suggests uptrend conditions, and vice versa, DI+ crossing below the DI- might signify the downtrend. The directional index, in turn, is equal to the percentage ratio of the absolute value of difference between DI+ and DI- to their sum.ĭMI is a trend-following indicator. ADX is calculated as an average of the directional index the average type is the same as in DI+ and DI. By default, in the calculation of both DI+ and DI-, the Wilder's average is used, however, you are free to choose other average types in input parameters. DI- is calculated similarly, using the decrease of low price instead. DI+ is calculated as an average increase of high price (if the high price decreases, 0 is taken), divided by the ATR (Average True Range) and multiplied by 100. The Directional Movement Index (DMI) comprises three plots: DI+, DI-, and ADX (Average Directional Index).
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