What's the difference between DMI and ADX?

DMI (+DI and -DI) shows trend direction. ADX shows trend strength. They work together as the ADX system.

Key Takeaways

Difficulty:Intermediate

Reliability:High

Category:trend

Timeframes:4H, Daily, Weekly

Directional Movement Index (DMI)

trend📊 4H, Daily, Weekly

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

Formula

Code

+DI = (Smoothed +DM / ATR) × 100

-DI = (Smoothed -DM / ATR) × 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

Trading Setup Example

Entry, stop loss, and take profit levels.

📈 Buy Setup

📉 Sell Setup

Always wait for signal confirmation before entering a trade.

Where This Indicator Works Best

Trend context and market position.

📈 Bullish Context

📉 Bearish Context

Works best in strongly trending markets.

Live Chart — Directional Movement Index (DMI)

See Directional Movement Index (DMI) in action on a live chart. Try changing the settings and timeframe.

Directional Movement Index (DMI) is a manual drawing tool or chart type and cannot be auto-overlaid as a study.

Open Chart on TradingView

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Parameters

Period

Default: 14

DMI period

📈 Bullish Signals

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

📉 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

✗Trading DI crossovers without ADX confirmation

✗Ignoring low ADX readings

Confirmation Signals

ADX above 25

Price action

Volume

Best For

Trend directionTrend strength with ADXCrossover signals

💡 Pro Tips

•Always use with ADX
•DI crossovers are trend signals
•Works best when ADX > 25

Last updated: February 8, 2026

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 Indicators— Financial Education BabyPips - Technical Indicators— Trading School MetaTrader 5 Docs— Official Documentation

Clear Warning: Educational Purposes Only

This indicator is for educational and testing purposes only. Do NOT use it with real money. Test only on demo accounts. Trading with real money involves substantial risk of capital loss. This tool does not constitute investment advice.

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.

Back to All Indicators