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Apply ADX/DMI Indicator

To apply an ADX/DMI Indicator

  1. From within a chart, from the Edit menu select Studies.
  2. Choose ADX/DMI and Add the study.
  3. Complete parameters as necessary.

 

The ADX/DMI is represented by three lines +DM, -DM and ADX.

The Directional movement

If today's High is higher than yesterday's High then:

+DM = today's High - yesterday's High

If today's Low is lower than yesterday's Low then:

-DM = yesterday's Low - today's Low

If +DM is greater than -DM then: -DM = 0

If +DM is less than -DM then: +DM = 0

The true range

True range is the largest of:

Moving average of +DM, -DM and True Range

The Directional Indicators

Directional Index

The Average Directional Movement Index

Where:

N — the number of periods used in the calculation.

 

Important Disclosures