DMI strategy(lirshah)
The Directional Movement Index indicator, or DMI, is a trend trading indicator developed by Welles Wilder, which also invented one of the most popular overbought and oversold indicator " RSI indicator".
DMI is based on a scale from 0 to 100 that identifies the price direction and the strength of the trend.
The DMI indicator is composed of three lines:
ADX, which is non-directional, so it will quantify the strength of the trend regardless if it’s bullish or bearish.The ADX line is derived from the relationship of the DMI+ and DMI- lines
DMI+, which measures the strength of the upward price movement.
DMI-, which measures the strength of the downward price movement.
this strategy gives signals according to movements of these three lines and has the best result on xrpusd M15 chart.
DMI is based on a scale from 0 to 100 that identifies the price direction and the strength of the trend.
The DMI indicator is composed of three lines:
ADX, which is non-directional, so it will quantify the strength of the trend regardless if it’s bullish or bearish.The ADX line is derived from the relationship of the DMI+ and DMI- lines
DMI+, which measures the strength of the upward price movement.
DMI-, which measures the strength of the downward price movement.
this strategy gives signals according to movements of these three lines and has the best result on xrpusd M15 chart.
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v2.2 comment added