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Indicator

Directional Movement Index

Identify which side of the market is in control and how strong that control is — a trend direction and strength framework.

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Key Takeaways

DMI consists of DI+ measuring upward directional movement and DI- measuring downward directional movement.
DI+ above DI- signals bullish pressure.
DI- above DI+ signals bearish pressure.
Wider gap means stronger trend.
Used to confirm trend direction, measure participation strength, and filter low-quality setups.

What It Measures

DMI consists of DI+ measuring upward directional movement and DI- measuring downward directional movement.
DI+ above DI- signals bullish pressure.
DI- above DI+ signals bearish pressure.
Wider gap means stronger trend.

Institutional Use

Used to confirm trend direction, measure participation strength, and filter low-quality setups.
Aligns traders with dominant flow rather than anticipating reversals.

Key Signals

DI+ dominant and widening signals strengthening uptrend.
DI- dominant and widening signals strengthening downtrend.
Lines converging signals trend weakening.
Frequent crossovers signal range-bound conditions.

Trading Playbook

Trend entry: DI+ dominant, widening, and ADX rising — buy pullbacks to structure.
Bearish entry: DI- dominant and widening — sell rallies into resistance.
Exit when lines begin converging or ADX falls.

When Not to Trade

When DI+ and DI- are near equal.
In choppy range-bound conditions.
During major macro events.