What is the relationship between the four lines in the DMI indicator?
What is the relationship between the four lines in DMI indicators? DMI indicators have four lines:+DI, - DI, ADX, and ADXR, which are also its four parameter values. It is divided into two groups of indicators: multi empty indicators (+DI, - DI) and trend indicators (ADX, ADXR).
Among them, ADX and ADXR are guiding indicators for+DI and - DI, as well as trend indicators for judging the market. In addition, ADX is the average trend value DX, and DX is the percentage calculated based on the difference and comparison between+DI and - DI values.
How to use these four lines to determine the market situation in foreign exchange analysis?
1. When the+DI line is both below the ADX line, ADXR line, and - DI line (especially below the 50 line), it indicates that the market is in a weak market. At this time, the market is still in a downward trend, and people can continue to hold short orders.
2. When the+DI line, - DI line, ADX line, and ADXR line are twisted together under the 50 line and move horizontally in a narrow range, it indicates that the market trend is not yet obvious. At this time, the market is in a consolidation market, so don't worry about ending. This time, it is best to wait and see.
3. When the+DI line, ADX line, and ADXR line are all below the 50 line at the same time, but these three lines quickly diverge upwards, indicating that the market will rise. At this time, people can buy on dips and establish multiple orders.
The above is my understanding of DMI indicators, hoping to be helpful to everyone. The above content is for reference only.
The above information is provided by special analysts and is for reference only. CM Trade does not guarantee the accuracy, timeliness and completeness of the information content, so you should not place too much reliance on the information provided. CM Trade is not a company that provides financial advice, and only provides services of the nature of execution of orders. Readers are advised to seek relevant investment advice on their own. Please see our full disclaimer.
CM Trade
As a world leading financial trading platform, CMtrade Provides comprehensive one-stop trading services and opportunities for traders.
[Products]
The platform provides over 32 kinds of popular financial products such as forex, precious metals, crude oil, indices, cryptocurrencies and more.
[System]
2 top trading systems CM Trade MT4 / CM Trade APP, powerful and easy to operate
[Service]
Comprehensive market news, professional market analysis, 7*24 hours online customer service
[Advantage]
Low cost, high leverage, flexible one-stop all day two-way trading.
[Authority]
Licensed and strictly regulated by authorities. Traders deposits are independently kept by the bank. Fast deposit and withdrawal. Fair, efficient and transparent trading environment.
CM Trade Mobile Application
Economics Calendar
MoreYou May Also Like