Indicator Description

DDI (Directional Difference Index) is a technical indicator used to measure the difference in strength between bulls and bears in the market, commonly used for trend judgment and signal filtering.

Function Information

• Function Name: DDI
• Input Parameters: High, Low, Close
• Parameter Settings: timeperiod1 (default: 14), timeperiod2 (default: 5)
• Output: ddi, addi, ad

Calculation Principle

DDI is calculated using the following formula:

DMZ = IF(High + Low <= High[-1] + Low[-1], 0, MAX(High - High[-1], Low - Low[-1]))
DMF = IF(High + Low >= High[-1] + Low[-1], 0, MAX(High - High[-1], Low - Low[-1]))
DIZ = SUM(DMZ, timeperiod1)
DIF = SUM(DMF, timeperiod1)
DDI = (DIZ - DIF) / (DIZ + DIF) * 100
ADDI = MA(DDI, timeperiod2)
AD = MA(ADDI, 5)

Where DMZ is the upward movement and DMF is the downward movement.

Usage Scenarios

1. Trend judgment
2. Bull and bear strength analysis
3. Trading signal filtering
4. Divergence analysis

Usage Recommendations

1. Rising DDI indicates strengthening bullish power
2. Falling DDI indicates strengthening bearish power
3. Pay attention to divergence between DDI and price
4. Use in combination with other indicators