What is another name for the ADX indicator?

The Average Directional Index (ADX) is a derivative of the DMI, calculated by smoothing the differences between the +DI and -DI. This metric is crucial in determining the overall strength of the current trend, regardless of its direction.

The Directional Movement Indicator (DMI) encompasses two key indicators that are frequently mentioned together in the world of finance and cryptocurrency analysis. This tool is designed to provide insights into the direction and strength of market trends.

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The first component of the DMI is the +DI, which represents the upward directional movement. It measures the extent to which prices are trending upwards, offering a glimpse into potential bullish momentum.

On the other hand, the -DI represents the downward directional movement. This indicator assesses the downward trend of prices, indicating the presence of bearish sentiment in the market.