Tech Analysis To Identify Trend Using Directional Movement Index - DMI ๐ Day 4 (AMC As Example)
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Milk The Cow :Tech Analysis To Identify Trend Using Moving Average - MA ๐ Day 1 (AMC As Example)
Milk The Cow :Tech Analysis To Identify Trend Using Moving Average - MA ๐ Day 1 (AMC As Example)
Milk The Cow :Tech Analysis To Identify Trend Using Exponential Moving Average - EMA ๐ Day 3 (AMC A...
Directional Movement Index (DMI)?
Is a technical indicator that measures both the strength and direction of a price movement and is intended to reduce false signals.
(Sound cool ๐)
Is a technical indicator that measures both the strength and direction of a price movement and is intended to reduce false signals.
(Sound cool ๐)
Consist 3 lines:
1. Positive directional movement line (+DI)
ย ย ย [Highs]
2. Negative directional movement lineย (-DI)
ย ย ย [Lows]
3. An optional third line, called the average directional index (ADX)
1. Positive directional movement line (+DI)
ย ย ย [Highs]
2. Negative directional movement lineย (-DI)
ย ย ย [Lows]
3. An optional third line, called the average directional index (ADX)
Formulas:
+DI = [(Smoothed +DM) / ATR] ร100
-DI = [(Smoothed -DM) / ATR] ร100
DX=(โฃ+DI โ -DIโฃโ/โฃ+DI + -DIโฃ) ร100
where:+DMย (Directionalย Movement)=Currentย HighโPH
PH=Previousย high
-DM=Previousย LowโCurrentย Low
Smoothedย +/-DM=โ(14, t=1)DMโ[โ(14, t=1)/DM14]+CDM
CDM=Currentย DM
ATR=Averageย Trueย Rangeโ
*As usual, all calculations have been done by the moomoo ๐ฎ app indicator ![]()
Do not explore too deep into it.
If not, u may become insane
.
U just need know how to use DMI indicator that's all
.
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If not, u may become insane
U just need know how to use DMI indicator that's all
So to use DMI, visit @Meta Moo post to understand more
:
Meta Moo :Technical Analysis Challenge Day 4 - DMI
Meta Moo :Technical Analysis Challenge Day 4 - DMI
To tell the truth, I'm new to DMI too
.
So let's learn together
.
What I learned from @Meta Moo :
Moomoo DMI Indicator comprises four lines: PDI, MDI, ADX and ADXR.
ADX = overview of the trend's strength
PDI and MDI = price action's direction
So let's learn together
What I learned from @Meta Moo :
Moomoo DMI Indicator comprises four lines: PDI, MDI, ADX and ADXR.
ADX = overview of the trend's strength
PDI and MDI = price action's direction
Moomoo use different symbol:
DX = 100 * ((PDI - MDI) / (PDI + MDI))
where
ADIย = modified Moving Average of DX
PDIย = Current Plus Directional Movement
DXย = Current DX
MDIย = Current Minus Directional Movement
DX = 100 * ((PDI - MDI) / (PDI + MDI))
where
ADIย = modified Moving Average of DX
PDIย = Current Plus Directional Movement
DXย = Current DX
MDIย = Current Minus Directional Movement
(u get the idea ๐ก... it's the same method)
Source:
https://download.esignal.com/products/workstation/help/charts/studies/adi.htm
Source:
https://download.esignal.com/products/workstation/help/charts/studies/adi.htm
Key ๐ points:
ADX above 25 + PDI above MDI
=ADX measure strength of uptrend
If PDI below MDI
=ADX measures strength of downtrend
(Hmm...
I guess "25" is the lucky number
.
What about if it's below 25? Well, whatever
)
ADX above 25 + PDI above MDI
=ADX measure strength of uptrend
If PDI below MDI
=ADX measures strength of downtrend
(Hmm...
What about if it's below 25? Well, whatever
P1:
(First, some of u guys may have DMI missing.
Go to "Indicators" setting = Mentioned in previous post Day1 & add indicator.)
(First, some of u guys may have DMI missing.
Go to "Indicators" setting = Mentioned in previous post Day1 & add indicator.)
![Tech Analysis To Identify Trend Using Directional Movement Index - DMI ๐ Day 4 (AMC As Example)](https://ussnsimg.moomoo.com/1647497161952-random5148-101642595-android-compress.jpg/bigmoo)
P2:
(Select DMI as shown in below picture ๐ธ)
(Select DMI as shown in below picture ๐ธ)
![Tech Analysis To Identify Trend Using Directional Movement Index - DMI ๐ Day 4 (AMC As Example)](https://ussnsimg.moomoo.com/1647497831078-random8719-101642595-android-compress.jpg/bigmoo)
![Tech Analysis To Identify Trend Using Directional Movement Index - DMI ๐ Day 4 (AMC As Example)](https://ussnsimg.moomoo.com/1647497831198-random323-101642595-android-compress.jpg/bigmoo)
P4:
Origin AMC Graph:
(U should be at here by now if u have followed the steps correctly. Oi, don't go wrong direction
)
Origin AMC Graph:
(U should be at here by now if u have followed the steps correctly. Oi, don't go wrong direction
![Tech Analysis To Identify Trend Using Directional Movement Index - DMI ๐ Day 4 (AMC As Example)](https://ussnsimg.moomoo.com/1647497831312-random4845-101642595-android-compress.jpg/bigmoo)
P4.1:
Applying what we learned to use DMI indicator:
Applying what we learned to use DMI indicator:
![Tech Analysis To Identify Trend Using Directional Movement Index - DMI ๐ Day 4 (AMC As Example)](https://ussnsimg.moomoo.com/1647497831455-random9555-101642595-android-compress.jpg/bigmoo)
Green circling = ADXย > 25
PDI = ORANGE
MDI = PINK
Blue circling = PDI > MDI
Conclusion for P4.1 at that period = Possible uptrend
PDI = ORANGE
MDI = PINK
Blue circling = PDI > MDI
Conclusion for P4.1 at that period = Possible uptrend
P4.2:
![Tech Analysis To Identify Trend Using Directional Movement Index - DMI ๐ Day 4 (AMC As Example)](https://ussnsimg.moomoo.com/1647498659824-random8136-101642595-android-compress.jpg/bigmoo)
Yellow circling = ADXย < 25
(I think >25 or < 25 is just measuring the strength... so is something like to know if it's a market trap
. Above 25 mean u should be safe since the trend strength is strong
, I guess. PDI & MDI are the main focus.)
PDI = ORANGE
MDI = PINK
Blue circling = PDI < MDI
Conclusion for P4.2 at that period = Possible downtrend
(I think >25 or < 25 is just measuring the strength... so is something like to know if it's a market trap
PDI = ORANGE
MDI = PINK
Blue circling = PDI < MDI
Conclusion for P4.2 at that period = Possible downtrend
Yup
, I guess that how we should apply DMI.
Mentioned before in previous post Day 3, not all indicators are suitable for long term investors.
It just depends on how u use them.
It just depends on how u use them.
This marked the 4th day & the last day of the event. (Finally done
)
Well, guess will cya guys around in the moomoo community sometime
.
Well, guess will cya guys around in the moomoo community sometime
As always, DYODD first before investing ![]()
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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Milk The Cow OP : Now thinking back, I may had read before DMI in the very past...
.
.
It just that I'd forgotten all about it since I never use it, hahaha
Pieces of memories are coming back to me.
My backup folders in my brain activated again
Milk The Cow OP Milk The Cow OP : Nice sharing of ideas
.
by learning together
or teaching (well, maybe teaching is not my type/style
).
It also helps refreshed my memories
Meta Moo : You've completed all the 4 tasks![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
Meta Moo Milk The Cow OP : learning by teaching![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
Milk The Cow OP Meta Moo :![](https://emoticon.futunn.com/rich_big_face2/58.png)
steady Pom pipi : You're great![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
Milk The Cow OP steady Pom pipi : Ty![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)