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. Average Directional Index - ADX

    An indicator used in technical analysis as an objective value ...
  2. Trend

    The general direction of a market or of the price of an asset. ...
  3. Positive Directional Indicator ...

    A component of the average directional index that is used to ...
  4. Uptrend

    Describes the price movement of a financial asset when the overall ...
  5. Directional Movement Index - DMI

    An indicator developed by J. Welles Wilder for identifying when ...
  6. Downtrend

    Describes the price movement of a financial asset when the overall ...
RELATED FAQS
  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. 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 >>
Related Articles
  1. Trading Strategies

    Use The Momentum Strategy To Your Advantage

    Learn how to use a number of different indicators to know when to make your trading moves.
  2. Forex Education

    Finding Market Movement With The ADX

    Take a closer look at this indicator, which refines your insight into the strength of a prevailing trend.
  3. Active Trading Fundamentals

    DMI Points The Way To Profits

    The directional movement index tells you whether to go long, short or stand aside.
  4. Mutual Funds & ETFs

    How To Apply Technical Indicators To Mutual Funds

    Mutual funds do not readily lend themselves to technical analysis, but investors can use common indicators to evaluate mutual funds as easily as stocks.
  5. Stock Analysis

    A Trader's Look at the S&P 500

    Moving averages are sending an important signal, and it's probably not what you think.
  6. Chart Advisor

    Is Now the Time to Invest in North America?

    Bullish chart patterns across the North American markets suggest that now might actually be a wise time to allocate closer to home.
  7. Chart Advisor

    These Oil Service Stocks Are Ready For A Move Higher

    In the oil services sector, active traders have been trying hard to establish a floor and the double bottom pattern that is appearing on the chart suggests that a short-term reversal could be ...
  8. Trading Strategies

    The Top Five Stocks For Novice Swing Traders

    New to Swing Trading? Here are the top five stocks recommended for swing trading.
  9. Chart Advisor

    These ETFs are Breaking Out of Chart Patterns Now

    Three buys and one sell; here are four ETFs breaking out of chart patterns right now.
  10. Trading Strategies

    Capitalize On Collars To Enhance Your Trades

    Trade collaring measures current technicals and makes swift adjustments to account for environmental changes.

You May Also Like

Hot Definitions
  1. Fiat Money

    Currency that a government has declared to be legal tender, but is not backed by a physical commodity. The value of fiat ...
  2. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  3. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  4. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  5. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  6. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
Trading Center