Tuesday, July 25, 2006

 
Technical Indicators

Directional Momentum Indicator

The Directional Momentum Indicator is an attempt to quantify the trending or directional behavior of a market. It helps identify trends and whether or not price is moving quickly enough to be worth a long or short play.

+DI and -DI are components in the calculation of the ADX (Average Directional Movement) and ADXR (Directional Movement Rating) indicators. Perhaps the best way to think of the +DI is as a measure of the percentage of upwards movement. When the +DI value is greater than the -DI, a long position is indicated...

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