The DMI, created by J. Welles Wilder, has two lines: positive and negative directional movement. These lines measure the strength of bullish and bearish trends.
A bullish trend is indicated when the positive line is above the negative, and a bearish trend when the negative line is above.
Traders use crossovers of these lines to identify buy and sell points.
A bullish trend is indicated when the positive line is above the negative, and a bearish trend when the negative line is above.
Traders use crossovers of these lines to identify buy and sell points.