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    Directional Movement Index
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      Directional Movement Index

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        Article summary

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        Directional Movement Index (DX) is an indicator that measures both the overall strength and direction of a trend. As a component of the Directional Movement System, DX comprises an Average Directional Movement Index (ADX) which is a smoothed version of DX, and two standard indicators: positive directional indicator (DI+) and negative directional indicator (DI-). The larger the spread between DI+ and DX-, the stronger the price trend is. The spread is represented by DX line fluctuating on the 0 to +100 scale, whereby the readings above 25 indicate trend's strength.

        DI+ = (Smoothed (DM+) / ATR) x 100
        DI- = (Smoothed (DM-) / ATR) x 100
        DX = ( |(DI+) - (DI-)| / |(DI+) + (DI-)| ) x 100

        where:
        DM+ (Directional Movement) = Current High - Previous High
        DM- (Directional Movement) = Previous Low - Current Low
        Smoothed (DM+/-) = Σt=1..14 (DM) - Σt=1..14 (DM)/14 + CDM
        t – number of periods (length)
        CDM – Current DM
        ATR – Average True Range

        Directional Movement IndexDirectional Movement Index

        INPUTS

        InputDescription
        LengthThe number of periods the indicator uses to calculate the DX
        Average
        The following Moving Average types are available for calculations:
        • Simple. Simple Moving Average (SMA) is applied to DX.
        • Wilders. Wilders Smoothing is applied to DX.
        • Weighted. Weighted Moving Average (WMA) is applied to DX.
        • Exponential. Exponential Moving Average (EMA) is applied to DX. 

        PLOTS

        The plot renders the data you are working with on the chart. You can show/hide a plot by clicking the corresponding item in the settings. Every plot has a set of basic settings that you can change: color, weight, and type.

        PlotDescription
        DI-The plot of the negative directional indicator
        DI+The plot of the positive directional indicator
        ADXThe Average Directional Movement Index plot
        Color

        Click the color rectangle under the plot's name to open the palette. Use the slider at the bottom to set the opacity of the color.

        Palette To create a custom color:
        1. Clickto open the color picker
        2. By using the slider at the bottom, adjust the main color
        3. Then, set a shade for the main color on the palette

        The custom-created colors are added to your palette. To remove a custom color, drag it out of the palette.

        Weight
        Change the value (in px) to adjust the thickness of the plot.
        Type
        The following plot types are available:
        • Linear. The plot is displayed as a line.
        • Column. The plot is displayed as a histogram.
        • Difference. The plot is displayed as a line which represents the difference between High and Low prices of the bar.
        • Points. The plot is displayed as points.
        • Text above candle. The plot is displayed as the price labels above candles on the chart.
        • Text below candle. The plot is displayed as the price labels below candles on the chart.
        • Triangle above candle. The plot is displayed as triangles above candles on the chart.
        • Color candle. The candles on candle-type charts are highlighted with specified colors.

        OVERLAYING

        Check Overlaying to display the indicator on the chart. Otherwise, the indicator is shown in a study pane down below.

        Note: To reset the settings, click Restore to Default next to the SETTINGS: INDICATOR'S TITLE
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