DMI Cross
Trend
The crossing of the two directional lines +DI and -DI from the Directional Movement System, without a trend-strength filter.
In its original form this indicator uses volume and/or the daily range (High/Low). The scanner only has closing prices and approximates those inputs (see the note at the bottom). So treat the absolute values as indicative; the direction and the crossings remain usable.
Construction & calculation
- Compute +DI and -DI over 14 periods (the same building blocks as for the ADX).
- Track the difference +DI - -DI and detect the sign change within the last bars.
Bullish: +DI crosses above -DI
Bearish: -DI crosses above +DI
Interpretation
- The crossing marks the moment when dominance between buyers and sellers flips.
- The further the two lines diverge after the crossing, the more convincing the new direction.
- Wilder himself advised using the extreme of the crossing day as the trigger: only enter once that high/low is broken.
How the signal works in this scanner
Buy signal (green)The difference +DI - -DI moves from negative to zero or positive within the window of the last bars.
Sell signal (red)The difference +DI - -DI moves from positive to zero or negative.
Watch-outs & pitfalls
- Without an ADX filter this crossing produces many false signals in a directionless market. If you want only the strong version, look at the ADX / DMI row.