Sunday, August 12, 2007

The Directional Movement Index (DMI)

The directional movement index provides a signal of trend presence in the market. The line simply rates the price directional movement on a scale of0 to 100. The higher the number, the better the trend potential of a movement, and vice versa. (See Figure DMI1.) This system can be used by itself or as a filter to the SAR system.

Figure DMI1. Example of the directional movement index (DMI)




5 comments:

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Anonymous said...

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