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What is the relationship between the four lines in the DMI indicator?

2023-06-21
1096

  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.

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