Movement index (DMI) forexrebateclub a technical analysis master Wells • White created, its basic principle is to seek foreign exchange forex rebate club rise cashback forex fall in the equilibrium of the forces of buyers and sellers and the price fluctuations in the interaction between the two sides of the cycle process first to confirm the basic cashbackforexexness value (DM). The so-called movement value is the price fluctuation of the cashbackforexbroker is greater than the maximum price of the previous day, said the price fluctuations increase or decrease in the magnitude of no movement with +DM = 0 and -DM = 0 to say no movement there are two cases: (a) the highest price of the day is greater than or equal to the highest price of the previous day, or, the lowest price of the day is greater than or equal to the lowest price of the previous day, are known as the day of internal movement, also called no movement day; (b) the highest price of the day is greater than the highest price of the previous day, the absolute value of the difference is equal to the absolute value of the difference between the lowest price of the day and the lowest price of the previous day, forming a two-force equilibrium without movement, so called two-force equilibrium day rising movement (+DM): the highest price of the day is higher than the highest price of the previous day, the lowest price of the day is greater than or equal to the lowest price of the previous day, there is an upward movement value, and equal to the difference between the highest price of the day and the highest price of the previous day Absolute value of downward movement (-DM): the lowest price of the day is lower than the lowest price of the previous day, the highest price of the day is greater than or equal to the highest price of the previous day, there is a downward movement value, and equal to the absolute value of the difference between the lowest price of the day and the lowest price of the previous day then find the true volatility, which is the largest change in the price of the day compared with the closing price of the previous day Comparison methods are three: (a) the difference between the highest price of the day and the lowest price (H- (L) (b) the difference between the highest price of the day and the previous days closing price (H-PC) (c) the difference between the lowest price of the day and the previous days closing price (L-PC) the difference between the three largest of the above is the true volatility of the day (TR) in the calculation of ± DM and TR to find the movement index line (DI) DI is an indicator to detect price increases or decreases, to +DI and -DI said +DI Calculation method: 100 * (+DM) / TR - DI calculation method: 100 * (-DM) / TR, the period is generally 14 days to calculate the 14th day of +DM14, -DI14 and TR14, the use of smoothed moving average formula: the real volatility of the day TR14 = TR14 (TR14/14) + TR calculate the upward movement of the day +DM14 = (+DM14 ) (+DM14/14) + (+DM) to calculate the downward movement of the day -DM14 = (-DM14) (-DM14/14) + (-DM) After obtaining the value of the positive and negative movement indicator (DI), since the value is always between 0100, it is convenient to plot this graph if the price continues to fall, the negative movement value continues to appear, which will cause the value of the downward movement line to rise. The relative upward movement line is a downward trend; when the price continues to rise, the situation is the opposite of the bullish consolidation when the difference between the upward and downward movement line is very small Another pointer line for the average movement line (ADX), the calculation method: DX (movement value) = 100 * DI-DIF / DI-SUM (DI-DIF upward movement line and the difference between the downward movement line DI-SUM upward movement line and The sum of the downward movement line) ADX = (average of the previous days movement * 13 + 14 days before the average value of movement ADX) / 2 The indicator mainly lies in the analysis of the relationship between the rising movement index line (+DI), falling movement index line (-DI), the average value of movement (ADX) and the movement index evaluation index line (ADXR), is a trend judgment system, so it can be used as a long-term trading parameters movement The use of indices: (a) the use of +DI and -DI: When the +DI of the graph breaks -DI from below, it means that there is a new long into the market, it is a buy signal; the opposite is a sell signal (b) the use of ADX: ADX is the average of the DX trend line, DX is calculated based on the difference between +DI and -DI divided by the percentage of the sum, its main functions are: (a) to determine the trend of the market ( (b) to determine whether the market is weak (c) to determine whether the market has bottomed or reached the top (c) XR is the assessment index of ADX ADXR is flatter than ADX, when +DI and -DI signal the purchase and sale, ADXR and ADX intersect, it is a signal to send the last out or enter the market opportunity, such as the subsequent emergence of a large market should immediately take measures (d) ADXR is also an indicator to assess the market when When ADXR is at a high price, it means that the market will be volatile; when ADXR is at a low price, it means that the market is weak because the above four indicators affect each other, so a comprehensive and integrated judgment is better
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