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  • Welcome to the Investors Trading Academy talking glossary of financial terms and events.

  • Our word of the day isDirectional Movement Index

  • Directional Movement Index is an indicator developed by Welles Wilder, based on a scale

  • between 0 to 100, which rate whether a particular financial instrument is experiencing a trend

  • or not. Using this index can help you accurately make trades in the currency markets. DMI is

  • not to be confused with ATR as they both measure momentum. DMI and ADI are similar indicators.

  • ADX is an indicator used in technical analysis as an objective value for the strength of

  • trend. ADX is non-directional so it will quantify a trend's strength regardless of whether it

  • is up or down. ADX is usually plotted in a chart window along with two lines known as

  • the DMI or Directional Movement Indicators. ADX is derived from the relationship of the

  • DMI lines.

Welcome to the Investors Trading Academy talking glossary of financial terms and events.

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B1 directional index movement trend indicator strength

What is Directional Movement Index (DMI)?

  • 78 14
    richardwang posted on 2015/08/24
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