Directional Movement Index - DMI


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.

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.

  1. Average Directional Index - ADX

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  2. Technical Analysis

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  3. Negative Directional Indicator ...

    A component of the average directional index (ADX) that is used ...
  4. Positive Directional Indicator ...

    A component of the average directional index that is used to ...
  5. Fintech

    Fintech is a portmanteau of financial technology that describes ...
  6. Indicator

    Indicators are statistics used to measure current conditions ...
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  1. What are common trading strategies when using the Directional Movement Index (DMI)?

    The directional movement index, or DMI, is a useful momentum indicator for assessing price direction and trend strength. ... Read Full Answer >>
  2. Why is the Directional Movement Index (DMI) important for traders and analysts?

    J. Welles Wilder Jr. created the directional movement index (DMI) to identify whether or not a security is trending. DMI ... Read Full Answer >>
  3. How do I use the Directional Movement Index (DMI) for forex trading?

    The directional movement index, or DMI, is a momentum indicator use to determine the existence of a trend and trend strength, ... Read Full Answer >>
  4. How can I build a trading strategy based on the Aroon indicator?

    One of the primary goals of technical market analytics is to identify performance trends in individual securities or indexes. ... Read Full Answer >>
  5. What are some of the most common technical indicators that back up Doji patterns?

    The doji candlestick is important enough that Steve Nison devotes an entire chapter to it in his definitive work on candlestick ... Read Full Answer >>
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    The exhausted selling model is a pricing strategy used to identify and trade based off of the price floor of a security. ... Read Full Answer >>

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