Negative Directional Indicator - -DI

AAA

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 TERMS
  1. Trend

    The general direction of a market or of the price of an asset. ...
  2. Directional Movement Index - DMI

    An indicator developed by J. Welles Wilder for identifying when ...
  3. Average Directional Index - ADX

    An indicator used in technical analysis as an objective value ...
  4. Uptrend

    Describes the price movement of a financial asset when the overall ...
  5. Downtrend

    Describes the price movement of a financial asset when the overall ...
  6. Positive Directional Indicator ...

    A component of the average directional index that is used to ...
Related Articles
  1. Use The Momentum Strategy To Your Advantage
    Trading Strategies

    Use The Momentum Strategy To Your Advantage

  2. Finding Market Movement With The ADX
    Forex Education

    Finding Market Movement With The ADX

  3. DMI Points The Way To Profits
    Active Trading Fundamentals

    DMI Points The Way To Profits

  4. Technical Analysis Strategies for Beginners
    Trading Strategies

    Technical Analysis Strategies for Beginners

Hot Definitions
  1. Halloween Strategy

    An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market ...
  2. Halloween Massacre

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

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

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

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

    A form of short-term borrowing for dealers in government securities.
Trading Center