DEFINITION of '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 indicator is nearly always plotted along with the negative directional indicator.

BREAKING DOWN 'Positive Directional Indicator - +DI'

Many technical traders will watch for the positive directional indicator to cross above the negative directional indicator to signal the beginning of an uptrend. The +DI is a key factor in the calculation of the popular average directional index.

RELATED TERMS
  1. Negative Directional Indicator ...

    A component of the average directional index (ADX) that is used ...
  2. Wilder's DMI (ADX)

    Three lines compose the Direction Movement Indicators (DMI): ...
  3. Average Directional Index - ADX

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

    A moving average plotted alongside a technical indicator and ...
  5. Uptrend

    Describes the price movement of a financial asset when the overall ...
  6. Ease Of Movement

    A technical momentum indicator that is used to illustrate the ...
Related Articles
  1. Trading

    The Most Important Technical Indicators For Binary Options

    Trading binary options is not for the novice, but if you're ready to delve in, get to know the best technical indicators.
  2. Trading

    What is an Indicator?

    Investors use indicators to measure economic conditions and forecast financial and economic trends.
  3. Trading

    The Four Most Common Indicators in Trend Trading

    Here are the top indicators and tools trend traders use to establish when trends exist and find entry/exit points.
  4. Trading

    Top 7 Technical Analysis Tools

    Technical indicators determine the direction of an asset’s momentum and whether that direction will continue. Here are seven used most.
  5. Trading

    A Primer On The MACD

    Learn to trade in the direction of short-term momentum.
  6. Investing

    The Top Technical Indicators For Commodities Investing

    Traders can use "the usual suspects" (standard indicators for trend trading) when it comes to choosing indicators for investing in commodities. Here's how.
  7. Trading

    Using Technical Indicators To Develop Trading Strategies

    Unfortunately, there is no perfect investment strategy that will guarantee success, but you can find the indicators and strategies that will work best for your position.
RELATED FAQS
  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 >>
  2. How is the Average Directional Index (ADX) calculated and what is the formula?

    Learn about average directional index, or ADX, indicators, including the calculations for various elements of the ADX technical ... Read Answer >>
  3. 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 >>
  4. 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 >>
  5. What is the difference between market indicators and economic indicators?

    Read about the differences between technical market indicators and general economic indicators, and learn how traders and ... Read Answer >>
  6. How are moving averages used in trading?

    Moving averages are very popular tools used by technical traders to measure momentum. The main purpose of these averages ... Read Answer >>
Hot Definitions
  1. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
  2. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  3. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  4. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  5. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
  6. Yuppie

    Yuppie is a slang term denoting the market segment of young urban professionals. A yuppie is often characterized by youth, ...
Trading Center