Indicator - Directional Indicator
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Calculation Directional Indicator
DI+=DM+/TR
DI-=DM-/TR
TR=max[abs(Highest-Lowest);abs(Highest-CloseDayBefore);abs(Lowest-CloseDayBefore)]
DM+=max[0;Highest-HighestDayBefore]
DM-=max[0;LowestDayBefore-Lowest]
The parameter measures the number of days needed to smooth both lines using the moving average method.
In histogram mode, the bars display DI+ minus DI-
Interpretation Directional Indicator
The DI+ measures upward movement. The DI- measures downward movement.
A buy opportunity may appear when DI+ crosses above DI- and a sell signal when DI+ crosses below DI-.
These signals are mostly valid when there is a trend (ADX higher than 17 or 23).
