Trends/Trend strength and direction

DI crossover

Compares the strength of up moves (+DI) with down moves (−DI).

Trend strength and directionBest on 6M, 1YAlso called +DI/−DI cross, directional movement
DI crossover diagramIllustration of the DI crossover shape. It is a sketch, not real price data.+DI / −DICross
Illustration of the DI crossover shape. It is a sketch, not real price data.

What it shows

The directional movement system draws two lines. +DI measures the size of upward moves and −DI the size of downward moves, both relative to ATR. When +DI is above −DI, up moves have been bigger.

The lines cross when the balance changes.

How we find it

The same code that draws it on your chart follows these steps, with the same result every time.

  1. +DM = today's high − yesterday's high (if bigger than the down move).
  2. −DM = yesterday's low − today's low (if bigger than the up move).
  3. +DI and −DI = 14-bar smoothed DM ÷ ATR × 100.
  4. Mark the crosses.

Starting values: Length 14. These are proposed and will be tuned on real price data before launch.

How to read it

  • Teal line is +DI. Red line is −DI.
  • They cross at the gold dot.
  • Above: up moves are bigger.

Status labels you may see

LabelWhat it means
+DI above −DIUp moves are bigger.
−DI above +DIDown moves are bigger.
Just crossedCross in the last 3 bars.

What cancels it

A cross flips the state.

What traders check next

  • ADX level.
  • The gap between lines.
  • Price trend.

Limits

  • Many crosses in sideways markets.
  • Lags.
  • Settings are conventions.

Try it in forecastviz

  • Open any ticker and choose Trend strength and direction → DI crossover in the left menu.
  • Switch between 6M, 1Y to see how the picture changes.
  • Compare with Average directional index and Aroon on the same chart.

Questions

Is it a signal?

It is a comparison of up and down moves.

Why use ADX with it?

ADX shows if the trend is strong at all.

Related trends

Further reading

  • Wilder, New Concepts in Technical Trading Systems
  • Chande and Kroll, The New Technical Trader
  • Hosoda, Ichimoku Kinko Hyo
  • Murphy, Technical Analysis of the Financial Markets
  • Kaufman, Trading Systems and Methods

Educational only. Not financial advice, and not a price forecast. Charts are drawn by code from past price data, which may be delayed.