DDI (Directional Difference Index)

Indicator Description

DDI (Directional Difference Index) is a technical indicator used to measure the difference in strength between bulls and bears in the market, commonly used for trend judgment and signal filtering.

Function Information

• Function Name: DDI
• Input Parameters: High, Low, Close
• Parameter Settings: timeperiod1 (default: 14), timeperiod2 (default: 5)
• Output: ddi, addi, ad

Calculation Principle

DDI reflects changes in the strength of bulls and bears in the market by smoothing the directional difference over a certain period.

Application Scenarios

1. Trend judgment
2. Bull and bear strength analysis
3. Trading signal filtering
4. Divergence analysis

Usage Suggestions

1. Rising DDI indicates strengthening bullish power
2. Falling DDI indicates strengthening bearish power
3. Pay attention to divergence between DDI and price
4. Use in combination with other indicators