DMI
DMI (Directional Movement Index) calculates and plots the DMI Plus and DMI Minus values.
Description
DMI Plus is based on a comparison of the highs of a number of consecutive bars and the true range; DMI Minus is based on the lows of a number of consecutive bars versus the true range. ADX (Average Directional Movement) is calculated and plotted according to DMI Plus and DMI Minus values.
ADX may be used to determine if the market is trending. Rising ADX values indicate a trending market. The trend direction may be defined by DMI Plus and DMI Minus. If DMI Plus is above DMI Minus the trend is bullish, and vice versa.
Default Inputs
Length( 14 ) sets the number of bars included in DMI Plus, DMI Minus and ADX calculation.
ADXTrend( 25 ) sets the value used as the alert criteria.
Plots
Plot1 (DMI+, Cyan) - DMI Plus line.
Plot2 (DMI-, Red) - DMI Minus line.
Plot3 (ADX, Yellow) - ADX line.
