Wilder’s Directional Movement System

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ADX(Periods), DIP(Periods), DIN(Periods),

Overview
The Welles Wilder’s Directional Movement System contains five indicators; DI+, DI- and ADX. The ADX (Average Directional Movement Index) is an indicator of how much the market is trending, either up or down: the higher the ADX line, the more the market is trending and the more suitable it becomes for a trend-following system. This indicator consists of two lines: DI+ and DI-, the first one being a measure of
uptrend and the second one a measure of downtrend.

Detailed information about this indicator and formulas can be found in Welles Wilder’s book, “New Concepts in Technical Trading Systems”. The standard Directional Movement System draws a 14 period DI+ and a 14 period DI- in the same chart panel. ADX is also sometimes shown in the same chart panel.

Interpretation
A buy signal is given when DI+ crosses over DI-, a sell signal is given when DI- crosses over DI+.

Recommended Parameters
Periods: 14

Example
Set ADX_14 = ADX(14)
Set DIPlus_14 = DIP(14)
Set DIMinus_14 = DIN(14)
Plot(ADX_14, Line,Any, DMI)
Plot(DIPlus_14, Line,Any, DMI)
Plot(DIMinus_14, Line,Any, DMI)

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