Directional Movement Index - DMI

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.

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RELATED FAQS
  1. Why is the Directional Movement Index (DMI) important for traders and analysts?

    Read about the concepts behind J. Welles Wilder Jr.'s directional movement index (DMI), a technical indicator designed to ... Read Answer >>
  2. How do I use the Directional Movement Index (DMI) for forex trading?

    Learn how to incorporate the directional movement index, or DMI, into a forex trading strategy to better pinpoint trade entries ... Read Answer >>
  3. What are common trading strategies when using the Directional Movement Index (DMI)?

    Use the directional movement index, or DMI, to determine strength of buying and selling pressure in a market and for keys ... Read Answer >>
  4. How do technical analysts interpret the Average Directional Index (ADI)?

    Learn what the average directional index is and why technical analysts look towards ADX indicators to measure the strength ... Read Answer >>
  5. What is the Directional Movement Index (DMI) formula and how is it calculated?

    Discover the formulas used to calculate the three parts of the directional movement index: +DI, -DI and the average directional ... Read Answer >>
  6. Who developed the relative strength index (RSI)?

    Discover who created the relative strength index (RSI), a popular technical analysis tools that measures the velocity of ... Read Answer >>
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