Negative Directional Indicator - -DI

Filed Under » Active Trading , Forex , Technical Analysis

	Definition of 'Negative Directional Indicator - -DI' A component of the average directional index (ADX) that is used to measure the presence of a downtrend. When the -DI is sloping upward, it is a signal that the strength of the downtrend is increasing. This indicator is almost always plotted with the positive directional indicator (+DI).
	Investopedia explains 'Negative Directional Indicator - -DI' Many traders will watch for the negative directional indicator (-DI) to cross above the positive directional indicator (+DI), which signals the beginning of a new downtrend. The -DI is a key factor used in the calculation of the popular average directional index (ADX).

Related Definitions

Average Directional Index - ADX

An indicator used in technical analysis as an objective value for the strength of trend. ADX is non-directional so it will quantify a trend's strength regardless of whether it is up or ...
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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.
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Downtrend

Describes the price movement of a financial asset when the overall direction is downward. A formal downtrend occurs when each successive peak and trough is lower than the ones found ...
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- Trend
  
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- Uptrend
  
  Describes the price movement of a financial asset when the overall direction is upward. A formal uptrend is when each successive peak and trough is higher than the ones found earlier in ...
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- Positive Directional Indicator - +DI
  
  A component of the average directional index that is used to measure the presence of an uptrend. When the +DI is sloping upward, it is a signal that the uptrend is getting stronger. This ...
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