PLUS_DM (Positive Directional Movement)

Indicator Description

PLUS_DM (Positive Directional Movement) is a fundamental component of the ADX indicator system, used to measure upward price momentum and serves as the basis for calculating +DI.

Function Information

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

Calculation Principle

PLUS_DM is calculated using the following formula:

+DM = Current High - Previous High (if Current High > Previous High)

Where:

• Current High is the current period's high price
• Previous High is the previous period's high price

Usage Scenarios

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

Usage Recommendations

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