The Series of Technical Analysis Studies Chapter 5: “Directional Moving Index”

What is a Directional Moving Index?
The Directional Movement Index (also known as DMI) is a momentum indicator developed by J. Welles Wilder. The DMI is actually part of a series of technical indicators developed by Wilder, so some trading platforms split up the indicators, providing Directional Movement as one indicator and ADX as another. DMI tells you when to be long or short. It is especially useful for trend trading strategies because it differentiates between strong and weak trends, allowing the trader to enter only the strongest trends.

Continue reading “The Series of Technical Analysis Studies Chapter 5: “Directional Moving Index””