Directional Movement Index (DX)

Category: trend, momentum

Calculates the Directional Movement Index (DX) and its components (+DI, -DI) using Wilder's smoothing with a warmup compensation for immediate accuracy.

Formula

TR = \max(H-L, |H-C_{p}|, |L-C_{p}|)\nDM+ = (H-H_{p} > L_{p}-L) \text{ and } (H-H_{p} > 0) ? H-H_{p} : 0\nDM- = (L_{p}-L > H-H_{p}) \text{ and } (L_{p}-L > 0) ? L_{p}-L : 0\nDI+ = 100 \times \frac{RMA(DM+, n)}{RMA(TR, n)}\nDI- = 100 \times \frac{RMA(DM-, n)}{RMA(TR, n)}\nDX = 100 \times \frac{|DI+ - DI-|}{DI+ + DI-}

Inputs

• period (default: 14)

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