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MINUS_DM

Type: minus_dm • Category: indicators

Description​

Minus Directional Movement

Parameters​

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

Help​

MINUS_DM

Description​

The MINUS_DM worker is an indicator used in financial analysis to calculate the Minus Directional Movement. This indicator is part of the Directional Movement System, which is used to determine the strength of a trend and the direction it is heading.

The MINUS_DM indicator measures the downward price movement, helping traders and analysts to understand the bearish sentiment in the market.

What does this worker do?​

The MINUS_DM worker calculates the Minus Directional Movement by comparing the current low with the previous low and the current high with the previous high. It then uses these comparisons to determine the downward movement.

How to interpret the results​

The MINUS_DM indicator can be interpreted as follows:

  • A high MINUS_DM value indicates a strong downward movement, suggesting a bearish trend.
  • A low MINUS_DM value indicates a weak downward movement, suggesting a neutral or bullish trend.

Usage​

To use the MINUS_DM worker, simply provide the required parameters:

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

Example​

For a better understanding of how to use the MINUS_DM worker, you can refer to the following GIFs:

Full GIF​

Full GIF

Short GIF​

Short GIF

Additional Information​

The Directional Movement System, which includes the MINUS_DM indicator, was developed by J. Welles Wilder. This system helps traders and analysts to identify the trend and its strength, as well as provide signals for entering and exiting trades.

The MINUS_DM indicator is often used in combination with other indicators, such as the Plus Directional Movement (+DM) and the Average Directional Index (ADX), to form a comprehensive trading strategy.