Directional Movement

This strategy is based on the Directional Movement Index (DMI) When a Positive Directional Movement (+DM) is crossing Negative Directional Movement (-DM) in an upward direction then a buy signal is generated. A sell signal is generated when +DM is crossing -DM in a downward direction.

Formula

IF +DI(m) >= -DI(m)
THEN GO LONG
ELSE
IF +DI(m) <= -DI(m)
THEN GO SHORT
where +DI is a positive directional index;
-DI is a negative directional index;
and m is averaging periods; e.g. m = 14

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