DX (Directional Movement Index)

Indicator Description

DX (Directional Movement Index) is a trend strength indicator that measures the strength of a trend by calculating the difference between +DI and -DI. It is the basis of the ADX indicator.

Function Information

• Function Name: DX
• Input Parameters:
  • High: High price
  • Low: Low price
  • Close: Closing price
• Parameter Settings: None
• Output: DX value

Calculation Principle

DX is calculated using the following formula:

DX = 100 * |+DI - -DI| / (+DI + -DI)

Where:

• +DI is the positive directional indicator
• -DI is the negative directional indicator

Usage Scenarios

1. Trend Strength Assessment
2. Trend Confirmation
3. Trading Signal Generation
4. Market State Analysis

Usage Recommendations

1. DX > 25 indicates a strong trend
2. DX < 20 indicates a weak trend
3. Use in conjunction with +DI and -DI
4. Pay attention to market environment changes