DMI / ADX

DMI / ADX, like RSI and Parabolic, is a technical indicator devised by J. W. Wilder.
DMI / ADX was devised to improve the frequent occurrence of deception in the trend market where the RSI, which is a contrarian index, moves up and down in one direction. Although it is an oscillator-based index in terms of classification, it is an index that measures the direction and strength of trends, so basically we will use it in order.

Sirius FuturesChart

DMI is an abbreviation for “Directional Movement Index”. The current market price is a technical indicator used to measure whether it is an uptrend or a downtrend.

ADX stands for “Average Directional Movement Index”. You can see how strong or weak the current trend is.

Buy Signal

• When + DI surpasses -DI
• When + DI surpasses -DI and then ADX rises
• If + DI is above -DI when ADX surpasses ADXR

Sell Signal

• When -DI surpasses + DI
• When -DI surpasses + DI and then ADX rises
• When -DI is above + DI when ADX surpasses ADXR

See more technical indicators