P
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Key Takeaways

Difficulty:Intermediate
Reliability:High
Category:trend
Timeframes:4H, Daily, Weekly

Directional Movement Index (DMI)

trendšŸ“Š 4H, Daily, Weekly

System including +DI, -DI lines that measure trend direction, used with ADX.

Formula

Code
+DI = (Smoothed +DM / ATR) Ɨ 100
-DI = (Smoothed -DM / ATR) Ɨ 100

Detailed Explanation

DMI is the directional component of the ADX system, showing whether buyers or sellers are in control.

**Components:** - **+DI**: Measures upward price movement - **-DI**: Measures downward price movement - Combined with ADX for complete picture

Parameters

Period
Default: 14
DMI period

šŸ“ˆ Bullish Signals

+DI crosses above -DI, especially when ADX is rising

šŸ“‰ Bearish Signals

-DI crosses above +DI, especially when ADX is rising

Python Implementation

DMI calculation

Python
import pandas_ta as ta
dmi = ta.adx(df['high'], df['low'], df['close'], length=14)
df['Plus_DI'] = dmi['DMP_14']
df['Minus_DI'] = dmi['DMN_14']
df['ADX'] = dmi['ADX_14']

TradingView Pine Script

Try on TradingView
JavaScript
//@version=5
indicator("DMI")
[plus, minus, adx] = ta.dmi(14, 14)
plot(plus, "+DI", color=color.green)
plot(minus, "-DI", color=color.red)
plot(adx, "ADX", color=color.blue)
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MT5 MQL5 Code

C++
int adx_handle = iADX(_Symbol, _Period, 14);
double plus_di[], minus_di[], adx[];
CopyBuffer(adx_handle, 0, 0, 100, adx);
CopyBuffer(adx_handle, 1, 0, 100, plus_di);
CopyBuffer(adx_handle, 2, 0, 100, minus_di);

Python Libraries

pandas-ta
Technical analysis
pip install pandas-ta

Common Mistakes

āœ—Trading DI crossovers without ADX confirmation
āœ—Ignoring low ADX readings

Confirmation Signals

ADX above 25
Price action
Volume

Best For

Trend directionTrend strength with ADXCrossover signals

šŸ’” Pro Tips

  • ā€¢Always use with ADX
  • ā€¢DI crossovers are trend signals
  • ā€¢Works best when ADX > 25
Last updated: December 29, 2024

Educational Disclaimer

This content is for educational purposes only and does not constitute financial or investment advice. Trading involves significant risk and you may lose your capital. Always consult a licensed financial advisor before making investment decisions.

Learn More

Investopedia - Technical IndicatorsBabyPips - Technical IndicatorsMetaTrader 5 Docs

Frequently Asked Questions

Related Indicators

Average Directional Index (ADX)

Measures trend strength without indicating direction. Values 0-100, higher = stronger trend.

Parabolic SAR

Stop and Reverse indicator that provides potential entry/exit points and trailing stop levels.

Supertrend

Trend-following indicator based on ATR that plots above or below price to show trend direction.

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