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To apply an ADX/DMI Indicator
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
The Average Directional Movement Index
N — the number of periods used in the calculation.