Directional Movement System


Function Name: dms

Tags: None

Category: Trend

The concept of the Directional Movement System is based on the assumption that in an upward trend today's highest price is higher than yesterday's highest price and in a downward trend today's lowest price is lower than yesterday's lowest price.

The Directional Movement System indicator calculates and plots the DMI Plus and DMI Minus values. DMI Plus is calculated from a comparison of the highs on a series of consecutive bars versus the true range; DMI Minus is calculated from the lows on a series of consecutive bars versus the true range. These values are used to calculate ADX, which is also plotted by this indicator. ADX is commonly used to indicate whether a market is trending. Rising ADX values indicate a trending market without indication of the trend direction. The DMI Plus and DMI Minus, components of the ADX, can aid in identifying direction. DMI Plus crossing over DMI Minus is a bullish sign, and vice versa.







Default Value: 14  |  Minimum: 2  |  Maximum: 9999


Type: Numeric