Indicator Description

DMI (Directional Movement Index) is a technical indicator that measures the directional movement of price. It consists of +DI and -DI lines that indicate upward and downward price movement respectively.

Calculation Principle

DMI calculation is based on the following steps:

1. Calculate +DM (Plus Directional Movement) and -DM (Minus Directional Movement)
2. Calculate the True Range (TR)
3. Smooth +DM, -DM, and TR over a specified period
4. Calculate +DI = (Smoothed +DM / Smoothed TR) * 100
5. Calculate -DI = (Smoothed -DM / Smoothed TR) * 100

Function Information

• Function Name: DMI
• Input Parameters:
  • High: Highest price
  • Low: Lowest price
  • Close: Closing price
• Parameter Settings:
  • timeperiod: Time period (default: 14)

Usage

DMI is used to identify trend direction and strength. When +DI crosses above -DI, it may indicate a bullish signal. When -DI crosses above +DI, it may indicate a bearish signal.

Related Indicators

• ADX
• ADXR
• PLUS_DI
• MINUS_DI