The DMI Directional Movement Index is a technical indicator usually shown below or above the price chart. This indicator is calculated by comparing the current price with the previous price range. The result is displayed as a positive upward direction indicator (+DI or +DMI) and a negative downward direction indicator (-DI or -DMI).
They also calculate the strength of upward or downward movement through DMI and show the result with a trend line called Average Directional Index or ADX.
+DI and -DI are shown as two separate lines on the chart, usually green and red. +DI is the difference between the highest price of the current day and the highest price of the previous day, and -DI performs the same calculation with the lowest price of the current day and the lowest price of the previous day.
The price falls when the red line is above the green line. When the green line is above the red line, the price rises. If the -DI and +DI cross each other and are moving back and forth, there is probably no direct trend for the price to change.
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