AppId is over the quota
The Directional Movement Index (also known as DMI) is a momentum indicator that was developed by J. Welles Wilder. It is calculated using the price, compares the current price with the previous price range, and displays the result as an upward movement line (+DI), and a downward movement line (-DI), between 0 and 100. The DMI also calculates the strength of the upward or downward movement, and displays the result as a trend strength line (ADX). The DMI is displayed on its own chart, separate from the price bars, and is the lower section in the chart shown above.
Description: The DMI is the ratio of exponential moving averages of the greater of the upward (U) and downward (D) price movements, and the true range (TR). Calculation:U = Hn - Hn-1
D = Ln-1 - Ln
TR = (Hn - Ln) | (Hn - Cn-1) | (Cn-1 - Ln)
EMAUP = EMAUn-1 + ((2 / (n + 1)) * (Un - EMAUn-1))
EMADOWN = EMADn-1 + ((2 / (n + 1)) * (Dn - EMADn-1))
EMATR = EMATRn-1 + ((2 / (n + 1)) * (TRn - EMATRn-1))
+DI = EMAUP / EMATR
-DI = EMADOWN / EMATR
DX = ABS(+DI - -DI) / (+DI + -DI)
ADX = EMADXn-1 + ((2 / (n + 1)) * (DXn - EMADXn-1))
The Directional Movement Index can be used in both ranging and trending markets. In general, when the +DI line is above the -DI line, the market is moving upwards, and when the -DI line is above the +DI line, the market is moving downwards. The ADX line shows the strength of the move, and the market is considered to be trending when the ADX line is above 30, and ranging when the ADX line is below 30. There are several trading systems that use the DMI, so there are several alternative uses of both the DI lines, and the ADX line.
No comments:
Post a Comment