MINUS_DM (Negative Directional Movement)

Indicator Description

MINUS_DM (Negative Directional Movement) is a fundamental component of the ADX indicator system, used to measure downward price momentum and serves as the basis for calculating -DI.

Function Information

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

Calculation Principle

MINUS_DM is calculated using the following formula:

-DM = Current Low - Previous Low (if Current Low < Previous Low)

Where:

  • Current Low is the current period's low price
  • Previous Low is the previous period's low price

Usage Scenarios

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

Usage Recommendations

  1. Higher -DM values indicate stronger downward momentum
  2. Use in conjunction with +DM
  3. Monitor trend changes
  4. Pay attention to market environment changes
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