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Directional Movement Index

May 26, 2019 by Investor

Directional Movement Index
It was invented by Welles Wider to fund the whole direction of an offered cost of a valuable asset. It consists of two different lines among which one represents a positive way whereas another represents a negative way. For calculating this index, a dealer at first calculates the dissimilarity between the existing high and the earlier high cost and the dissimilarity between the earlier low and the exiting low cost. This index can be utilized in trending the markets in determining strong purchase and selling signals.

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