DMI (Directional Movement Index)

Indicator Description

DMI (Directional Movement Index) is a technical indicator used to measure the strength and direction of market trends, commonly used to determine whether the market is trending.

Function Information

• Function Name: DMI
• Input Parameters: High, Low, Close
• Parameter Settings: timeperiod (default: 14)
• Output: pdi (+DI), mdi (-DI)

Calculation Principle

DMI reflects the power comparison between bulls and bears by calculating the positive directional indicator (+DI) and the negative directional indicator (-DI).

Application Scenarios

1. Trend strength judgment
2. Trend direction identification
3. Trend filtering
4. Trading signal generation

Usage Suggestions

1. +DI crossing above -DI can be seen as a buy signal
2. -DI crossing above +DI can be seen as a sell signal
3. Use ADX indicator to judge trend strength
4. Use in combination with other indicators