Directional Momentum Index ,DMI.is an indicator used in technical analysis to determine if a financial instrument, such as a stock, is trending in particular direction. It is broken into the positive directional indicator (+DI), negative directional indicator (-DI) and Average Directional Index (ADX). The value of the index can be zero. The higher the value of the DMI, the … [Read more...]
Average Directional Movement Index Rating (ADXR) Explained
The Average Directional Movement Index Rating (ADXR) indicator is an attempt to quantify the momentum change of the ADX indicator. It was developed by J. Welles Wilder and described in his book "New Concepts In Technical Trading Systems", written in 1978. The ADXR is constructed adding the current ADX value and an ADX value n-Periods ago and then dividing that sum by two. This … [Read more...]
TRIX: Momentum indicator
Introduction TRIX is a momentum indicator that displays the percent rate-of-change of a triple exponentially smoothed moving average of a security's closing price. It was developed in the early 1980's by Jack Hutson, an editor for Technical Analysis of Stocks and Commodities magazine. Oscillating around a zero line, TRIX is designed to filter out stock movements that are … [Read more...]
Forex Technical Indicators
Momentum Oscillators Momentum oscillators react very quickly to short-term changes in price, flipping back and forth between overbought and oversold levels. Oscillators are useful in both ranging and trending currency markets. The most common momentum oscillators include Relative Strength Index (RSI), Commodity Channel Index (CCI) and the Stochastic Oscillator. Let's take … [Read more...]