Syntax

DMI(close; high; low; period)

Arguments

The first three arguments are arrays:

• 'close' contains the closing prices
• 'high' contains the high prices
• 'low' contains the low prices

The 'period' argument defines the period for the function. It must be a constant greater than or equal to 1. 

Result

The result is an array. The first 'period' elements are marked as invalid. 

Description

The Directional Movement Index was developed by J. Welles Wilder. The DMI helps identify whether there is a definable trend in a market, and in which direction that trend is moving. The ADX function, which is a part of the Directional Movement System, is based on the DMI. The formula of the DMI is: 

where (+DI) is the current value of the Positive Directional Index and (-DI) is the current value of the Negative Directional Index. For internal calculations the DMI function uses the modified moving average.

Related Examples

Windows Forms: Data Manipulation\Functions\Directional Movement