Option Services and Software to Serve Every Need   |   sales@mindxpansion.com

global services

Maximize Your Profits!
Minimize Your Risk!

Get Option-Aid Today!

Directional Movement, +DI, -DI, DX, ADX, ADXR

The Directional Movement Indicator is used to identify trends in the prices of securities. It is often used in conjunction with trend-following systems such as the Parabolic SAR.

The Directional Movement system uses the interrelationships of several indicators in the identification of trends. The Positive Directional Indicator (+DI) provides a measure of buying pressure. The Negative Directional Indicator (-DI) measures selling pressure. These are plotted as lines, and when +DI is above -DI, it is a bullish signal and the crossover of +DI above -DI was the buying signal. When +DI is below -DI, it is a bearish signal and the crossover of +DI below -DI was a selling signal. However, it is not a reliable signal if DI crosses and recrosses in rapid succession. Wait for the sawtooth pattern to end before initiating a new position based on trend.

The Average Directional Index (ADX) measures the spread between +DI and -DI. When ADX moves above 20, it indicates a real trend. When ADX moves past 40, it is an indication that the trend is strong, but the trend could be nearing an end. When ADX peaks above 40 and starts declining, it may be time to take your profits. When ADX moves below 40, it shows that the trend is losing strenth and could presage a trading range. Whenever ADX is declining, it indicates the trend is weakening. When ADX rises above both +DI and -DI, it is a cautionary indication of overheating and profits should be taken on a downturn from that high level. When ADX is below both +DI and -DI, it indicates a lifeless market; it is not the time to be using a trend following system.

For a more detailed description of Directional Movement, read New Concepts in Technical Trading Systems by J. Welles Wilder Jr.

When you are analyzing potential option positions, it helps to have a computer program like Option-Aid that swiftly calculates volatility impacts, probabilities, statistics, and other parameters of interest. These programs can pay for themselves with the first trade that they help you with.

Buy Option-Aid Today and Maximize Your Profits!

Money       As you start using this valuable option software program and become familiar with the vast amount of information it puts at your fingertips, it quickly becomes an indispensable tool for evaluating option positions.

Information is the Key to Increasing Wealth

       Option-Aid is a great trading tool for playing out "what-if" scenarios to maximize your profits and minimize your losses. It has many features to give you the Trader's Advantage.

       Buy it today! Profits from your first position can more than pay for the program. Your order will be placed through a secure server.

       It will change your future! Order it now!

Order On-line

Visa Mastercard AmEX Discover

Get FREE Option Tips

The Option Trading Tips Newsletter is published by MindXpansion, the developers of Option-Aid. This newsletter gives you information for maximizing your profits in options trading, including option strategies and market indicators. Fill in the following information to subscribe to this FREE service.

  How you were referred to Us?   

(Please select SEND button after you have filled in information.)