Directional Movement Index (DMI)

Category: trend, momentum

Measures both the strength of a trend and its direction using the Directional Movement Index (DMI) and Average Directional Index (ADX).

Formula

\begin{cases} +DI = 100 \times \frac{RMA(+DM, n)}{RMA(TR, n)} \\ -DI = 100 \times \frac{RMA(-DM, n)}{RMA(TR, n)} \\ DX = 100 \times \frac{|+DI - -DI|}{+DI + -DI} \\ ADX = RMA(DX, m) \end{cases}

Inputs

• lensig (default: 14)
• len (default: 14)

See signal primitives, usage in published strategies and more on WOBR StrategyVerse.