The Directional Movement function is a popular technical analysis tool traders use to assess market trends. This system consists of three lines: the Positive Direction Indicator (+DI), the Negative Direction Indicator (-DI), and the Average Directional Movement Index (ADX). The +DI line represents upward trend movement, while the -DI line summarizes downward trend movement. On the other hand, the ADX line helps investors determine if the market is trending or ranging. By analyzing these three lines together, traders can identify potential entry and exit points and assess the overall strength of a trend. The Directional Movement System is a valuable tool for investors looking to make informed trading decisions.
