WildersDMI Modified

Technical Forex Market Indicator


The main use of this tool is to show the strength of a trend
WildersDMI
The main use of this tool is to show the strength of a trend
WildersDMI
The main use of this tool is to show the strength of a trend
WildersDMI
The main use of this tool is to show the strength of a trend
WildersDMI
The main use of this tool is to show the strength of a trend
WildersDMI
The main use of this tool is to show the strength of a trend
WildersDMI
The main use of this tool is to show the strength of a trend
WildersDMI
The main use of this tool is to show the strength of a trend
WildersDMI








The WildersDMI (Wilders Directional Movement Index) is a trend-following indicator developed by J. Welles Wilder, the author of the book "New Concepts in Technical Trading", designed to determine whether a security is in a trending or non-trending market. Since the market is in a strong trend only about 30% of the time and in sideways about 70% of the time, this indicator is used to capture the period when the market shows significant trending or directional behavior. Indicator is calculated using the price, compares the current price with the previous price range, and displays the result as an upward movement line (+DI), and a downward movement line (-DI), between 0 and 100. Trading should be carried out  when +DI rises above -DI and selling when +DI falls below -DI. The main use of this tool is to show the strength of a trend.
The calculation of the WildersDMI is fairly complex and lengthy, consists of three lines:
+DI: current positive directional index, the range of highs divided by the price range over the last day and previous close, smoothed over a given number of periods.
-DI: current negative directional index, the range of lows divided by the price range over the last day and previous close, smoothed over a given number of periods.
ADX: modified moving average of the difference of +DI and -DI divided by the sum of +DI and -DI, multiplied by 100.