What is the 'Directional Movement Index - DMI'
The directional movement index (DMI) is 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.
BREAKING DOWN '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.