Indicator Description

MINUS_DM (Negative Directional Movement) is a fundamental component of the ADX indicator system, used to measure downward price momentum and serves as the basis for calculating -DI.

Function Information

• Function Name: MINUS_DM
• Input Parameters:
  • High: Highest price
  • Low: Lowest price
• Parameter Settings:
  • timeperiod: Calculation period (default: 14)
• Output: MINUS_DM value

Calculation Principle

MINUS_DM is calculated using the following formula:

-DM = Current Low - Previous Low (if Current Low < Previous Low)

Where:

• Current Low is the current period's low price
• Previous Low is the previous period's low price

Usage Scenarios

1. Downward Momentum Analysis
2. Trend Strength Assessment
3. Trading Signal Generation
4. Market State Analysis

Usage Recommendations

1. Higher -DM values indicate stronger downward momentum
2. Use in conjunction with +DM
3. Monitor trend changes
4. Pay attention to market environment changes