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DX

Type: dx • Category: indicators

Description​

Directional Movement Index

Parameters​

NameTypeDescriptionRequiredDefault
dataExpstringprices datano
highstringselect the column with highest pricesno
lowstringselect the column with lowest pricesno
closestringselect the column with closing pricesno
timeperiodnumberNumber of periods to use for DX calculationno14

Help​

DX (Directional Movement Index)

Description​

The DX (Directional Movement Index) is a technical indicator used in financial analysis to measure the strength of a trend. It helps traders and analysts determine whether a market is trending or not, and to what extent.

The DX indicator is composed of three main components:

  • Plus Directional Indicator (+DI): measures the upward price movement
  • Minus Directional Indicator (-DI): measures the downward price movement
  • Directional Movement Index (DX): measures the absolute difference between +DI and -DI, normalized by the sum of +DI and -DI.

What does this worker do?​

This worker calculates the Directional Movement Index (DX) for a given set of price data. It takes the following parameters:

  • dataExp: prices data
  • high: select the column with highest prices
  • low: select the column with lowest prices
  • close: select the column with closing prices
  • timeperiod: Number of periods to use for DX calculation

The worker returns the calculated DX values.

How to interpret the results​

The DX values range from 0 to 100. A high DX value indicates a strong trend, while a low DX value indicates a weak or absent trend.

  • DX > 20: strong trend
  • DX < 20: weak or absent trend

The +DI and -DI lines can also be used to generate trading signals:

  • +DI > -DI: buy signal
  • +DI < -DI: sell signal

Additional Information​

The Directional Movement Index (DX) was developed by J. Welles Wilder Jr. and is described in his book "J. Welles Wilder Jr. - ADX, DMI, RSI" .

Usage Example​

To use this worker, simply provide the required parameters and run the calculation. The resulting DX values can be used to analyze the trend strength and generate trading signals.

How to use it​

For more information on how to use the DX indicator, you can watch the following videos:

[![Full Example](https://pub-6c7cc7f707d94ca98153d59a039b9a3d.r2.dev/indicator_full.gif)](https://pub-6c7cc7f707d94ca98153d59a039b9a3d.r2.dev/indicator_full.gif)

[![Short Example](https://pub-6c7cc7f707d94ca98153d59a039b9a3d.r2.dev/indicator_short.gif)](https://pub-6c7cc7f707d94ca98153d59a039b9a3d.r2.dev/indicator_short.gif)