Directional Movement Index - DMI

Dictionary Says

Definition of 'Directional Movement Index - DMI'

An indicator developed by J. Welles Wilder for identifying when a definable trend is present in an instrument. That is, the DMI tells whether an instrument is trending or not.
Investopedia Says

Investopedia explains 'Directional Movement Index - DMI'

The scale for the DMI is from 0 to 100. The average directional movement index (ADX) is a moving average of the DMI.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Technical Analysis

    A method of ...
  2. Average Directional Index - ADX

    An indicator ...
  3. Positive Directional Indicator - +DI

    A component of ...
  4. Negative Directional Indicator - -DI

    A component of ...
  5. Risk

    The chance that ...
  6. Universe Of Securities

    A set of ...
  7. Arithmetic Mean

    A mathematical ...
  8. Fundamental Analysis

    A method of ...
  9. Moving Average - MA

    An indicator ...
  10. Moving Average Chart

    A tool used by ...

Articles Of Interest

  1. DMI Points The Way To Profits

    The directional movement index tells you whether to go long, short or stand aside.
  2. ADX: The Trend Strength Indicator

    Follow this tool to reduced risk and increase profit potential.
  3. Tips For Controlling Investment Losses

    A profit/loss plan helps investors recognize mistakes and invest logically, rather than emotionally.
  4. Triple Screen Trading System - Part 4

    How can a trader use the Elder-Ray oscillator as the second screen of this system? Find out here.
  5. Triple Screen Trading System - Part 3

    Learn about market wave, the second screen in this three-part system.
  6. Triple Screen Trading System - Part 2

    Market tide is the basis for making trading decisions in this three-part system.
  7. Triple Screen Trading System - Part 1

    Learn to take advantage of both trend-following and oscillator techniques to analyze your trading decisions.
  8. Triangles: A Short Study In Continuation Patterns

    Learn how to read these formations of horizontal trading patterns.
  9. Momentum Trading With Discipline

    This type of strategy demands controlled decision-making, requiring a continual refinement of entry and exit techniques.
  10. Trade On Support For The Best Exit Strategy

    Find your sound exit strategy based on support and resistance levels, while understanding the psychology behind them.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center