Directional Movement Index - DMI

AAA

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 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.

RELATED TERMS
  1. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
  2. Average Directional Index - ADX

    An indicator used in technical analysis as an objective value ...
  3. Positive Directional Indicator ...

    A component of the average directional index that is used to ...
  4. Negative Directional Indicator ...

    A component of the average directional index (ADX) that is used ...
  5. Mass Index

    A form of technical analysis that looks at the range between ...
  6. Money Flow Index - MFI

    A momentum indicator that uses a stock’s price and volume to ...
Related Articles
  1. DMI Points The Way To Profits
    Active Trading Fundamentals

    DMI Points The Way To Profits

  2. ADX: The Trend Strength Indicator
    Active Trading

    ADX: The Trend Strength Indicator

  3. Technical Analysis Strategies for Beginners
    Trading Strategies

    Technical Analysis Strategies for Beginners

  4. Forget About Falling Oil, Look Into ...
    Chart Advisor

    Forget About Falling Oil, Look Into ...

comments powered by Disqus
Hot Definitions
  1. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  2. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  3. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  4. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  5. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
  6. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
Trading Center