this

Description
Average Directional Movement (ADX) is also sometimes referred to as the Directional Movement Index (DMI). It was developed by Welles Wilder and attempts to determine whether or not a stock is trending and the strength of the trend. An example chart is given below. Certain levels that may have significance are plotted on the chart with "dotted" and dashed signal lines. The "+DI" or positive directional movement value is plotted in green and the "-DI" in red. The "DMI" value is plotted as a thick blue line.



The View title displays the most recent value for the ADX, +DI and -DI. The Titlebar Chart Code for this indicator is adx. (see EAS Titlebar Chart Codes)

Inputs
The single lookback period for this function is p1. It controls the period of data included for each calculation of the ADX.

Output Data & Plotting
If returnflag is set to "data" a (b-a+1)-row by 3-column matrix of data will be returned. The output is only valid for data points beyond the lookback period, p1, in time. The first column is the series of DMI values, the second is the +DI values and the third is the -DI values.

Background Reading
Further information regarding this indicator can be found in the following resources:

Equis.com Directional Movement

Stockwerld.com DMI

Stockcharts.com ADX

Clearstation.com Reading Graphs

"Technical Analysis of Stocks & Commodities" Magazine, August 2000