17/04/2014 22:58:57 Free Membership Login
If your page isn't loading correctly please Click here
Basic ADVFN Video Help
ADVFN HomeHelpChartsStudiesDMI Direction Movement Indictor
  Adaptive Moving Average
  Average True Range
  Bid Offer spread
  Bollinger Bands
  Bollinger Band Width
  Buy/Sell Volume Ratio Moving Average
  CCI/MA Crossover
  CCI, The Commodity Channel Index
  Chaikin's Money Flow Persistence
  Chaikin Volatility
  Chande's Momentum Oscillator
  Chart Studies
  Choppiness Index
  Coppock Curve
  Delta Weighted Moving Average
  Detrended Price Oscillator
  Disparity index
  DMI Direction Movement Indictor
  Donchian Channels
  Exponential Moving Average
  Fast/Slow Kurtosis
  Fractal Dimension
  High/Low Moving Average
  Ichimoku Kinko Hyo
  JCM Study
  Keltner Bands
  Level 2 Scope
  Linear Regression
  Linear Regression Detrended Price
  MACD Histogram
  MACD, Moving Average Convergence Divergence
  MA Envelopes
  Mass Index
  Money Flow
  Moving Average
  On Balance Volume
  Parabolic SAR
  Path Length
  Point and Figure
  Price Oscillator
  Rate of Change
  RSI, Relative Strength Index
  Skew Bands
  Std Deviation
  The Chaikin Money Flow
  The Chaikin Oscillator
  Three Line Break
  Triple Moving Average
  True Strength Indicator
  Ultimate Oscillator
  Volatility Ratio
  Volume Accumulation
  Volume AMA
  Volume Efficency
  Volume EMA
  Volume MA
  Volume Oscillator
  Volume Weight Moving Average
  Weighted Moving Average
  Williams %R

DMI Direction Movement Indictor

The directional movement indictor, contains three lines, positive direction, +DI, negative direction, -DI, and average directional movement indictor.

The +DI directional line is the average of the moves towards higher prices, that is the average (exponential moving averages) of the one periods high minus the last periods high, or zero if the stock isn't moving upwards. It tracks how (if at all) fast the stock is moving upwards.

Similarly the -DI direction line, is the average of one periods low minus the last periods low, providing the stock is moving downwards. It tracks how (if at all) slow the stock is moving downwards.

The ADX line is exponential moving average of the, the positive difference between the two directional indictors divided by there sum. It tracks how strong the direction of the market is.

Using Dr. Alexander Elders technique, we mark trading signals on the chart, which at the following times.

Go Long, (green upward mark), when ADX rises while +DI is above -DI, provided the ADX started below -DI. Exit (Blue X) when ADX falls or -DI rises above +DI.

Similarly go Short, (red downward mark), when ADX rises while -DI is above +DI, provided the ADX started below +DI. Exit (Blue X) when ADX falls or +DI rises above -DI.

Using the edit button you can change the period for the moving averages, and you can also switch on and off the drawing of each of the three lines.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

1 site:2 us 140417 22:58