Minus-Directional-Movement

This particular data point on its own is minimal, as it is apart of a larger indicator called the Directional Movement Index or DMI for short. There are three different lines in the DMI and the minus direction movement is one of them that helps traders determine direction in the market. DMI is measured using a range of 0 to 100 and fluctuates as the market moves.

Updated over a year ago
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Reviewed by Gabriel Shpitalnik

When looking for a potential market trend, you want to ensure the data points are crossing above 20 to 25, as that can be more indicative of a potential change in the market. The minus directional movement aspect of this indicator shows the market may be trending bearish if the minus is above the positive directional movement and they cross above the 25 mark on the indicator.

The data point should be used with the DMI as a whole for the full effect. If you want to understand how the tool works fully, understand the data points that go into the equation and pick apart the variables. There are many tools that can help you narrow your search and assist in identifying the best indicator for your trading style. MacroAxis has a plethora of tools to help you in your research.

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