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).

BREAKING DOWN '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).

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  1. What are the main signals traders use when following the Average Directional Index ...

    Learn how the average directional index, or ADX, measures momentum and strength in market trends and how specific signals ... Read Answer >>
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    Learn about average directional index, or ADX, indicators, including the calculations for various elements of the ADX technical ... Read Answer >>
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    Discover the formulas used to calculate the three parts of the directional movement index: +DI, -DI and the average directional ... Read Answer >>
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    Read about the concepts behind J. Welles Wilder Jr.'s directional movement index (DMI), a technical indicator designed to ... Read Answer >>
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