Wilders DMI - Average - MetaTrader 5 Script | Forex Indicator Download - MT4/MT5 Resource

The series of indicator indices (DMI) that make up the Wilder Directional Movement Index are the Positive Movement Indicator (+DI) and the Negative Movement Indicator (-DI). They provide the basis for the more widely recognized Average Directional Index (ADX). Whereas ADX provides information about the strength of price movements, but not its direction, +DI and -DI provide information about the positive or negative direction of price movements over a period of time.

Wilder provided complete information on the function and structure of all the components that make up the Directional Movement Index in his 1978 book, New Concepts in Technical Trading Systems . In general, the positive and negative components of the DMI are concentrated in that part of the current bar's trading range beyond the previous price bar. If it is higher, it is considered positive (+) if it is lower, it is marked negative (-). These values ​​are divided by the true amplitude and averaged over a period of time, usually 14 periods. A +DI moving above -DI indicates that a positive or upward price direction has replaced a negative or downward price direction. On the contrary, when +DI is below -DI, ​​selling pressure from the price or lack of upward momentum in the price is taking over. When lines intersect, the direction or trend may change.

Wilders uses what is sometimes called the Wildes EMA in the DMI calculation (the Wilders EMA is the same as the SMMA in terms of value). This version extends the calculation and allows you to select different types of averages for this calculation (usually settings: SMA, EMA, SMMA or LWMA)

Attachment download

📎 wilders_dmi_-_averages.mq5 (14.19 KB)

Source: MQL5 #21927