Positive Directional Movement (+DI)

Formula for the Positive Directional Movement (+DI) Indicator
CE
Written by CJ Edwards
Updated 4 years ago

+DI indicates the bullish component of the historical series movement and is normally used in conjunction with the other W.Wilder indicators, namely ADX and -DI.

The interpretative theory also establishes the following rules:

In the case of ADX and +DI with increasing trends against a declining movement of the -DI the system expresses the intensification of a bullish trend;

if the ADX has a lateral or slightly decreasing trend, while +DI and -DI tend to a sort of convergence, the system shows the start of a congestion phase:

A decreasing ADX and the crossing of the +DI and -DI curves (-DI > +DI) confirm a distribution or redistribution;
The crossing of the +DI and -DI curves (with +DI > -DI) and a falling ADX confirm a phase of accumulation or reaccumulation.

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