MINUS_DI (Negative Directional Indicator)

Indicator Description

MINUS_DI (Negative Directional Indicator) is part of the ADX indicator system, used to measure the strength of downward price trends, typically used in conjunction with +DI.

Function Information

• Function Name: MINUS_DI
• Input Parameters:
  • High: High price
  • Low: Low price
  • Close: Closing price
• Parameter Settings:
  • timeperiod: Calculation period, default 14
• Output: MINUS_DI value

Calculation Principle

MINUS_DI is calculated using the following formula:

-DM = Current Low - Previous Low (if Current Low < Previous Low)
-DI = 100 * EMA(-DM) / ATR

Where:

• -DM is the negative directional movement
• ATR is the Average True Range
• EMA is the Exponential Moving Average

Usage Scenarios

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

Usage Recommendations

1. -DI > +DI indicates downward trend
2. Watch for -DI and +DI crossovers
3. Use in conjunction with ADX
4. Pay attention to market environment changes