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v0.8.6: update indicator docs, ndepend tooling, ALMA refactor, gitignore cleanup
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@@ -13,9 +13,7 @@
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| **PineScript** | [dx.pine](dx.pine) |
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- The Directional Movement Index is the raw, unsmoothed measure of trend strength from Wilder's directional movement system.
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- Parameterized by `period` (default 14).
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- Output range: Varies (see docs).
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- Requires `period` bars of warmup before first valid output (IsHot = true).
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- **Similar:** [ADX](../adx/Adx.md), [ADXR](../adxr/Adxr.md) | **Complementary:** +DI/-DI for direction | **Trading note:** Directional Index; unsmoothed ADX. More responsive but noisier.
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- Validated against TA-Lib, Skender, and Tulip reference implementations where available.
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The Directional Movement Index is the raw, unsmoothed measure of trend strength from Wilder's directional movement system. It decomposes price expansion into +DM and -DM, normalizes against True Range using RMA smoothing to produce +DI and -DI, then computes the ratio $DX = 100 \times |{+DI - {-DI}}| / ({+DI + {-DI}})$. Unlike ADX, which applies a final RMA pass to DX, the raw DX responds immediately to changes in directional dominance — making it noisier but approximately one full period faster. Output ranges from 0 to 100, where high values indicate strong directional movement regardless of up/down direction. DX is the building block from which ADX is derived.
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@@ -139,4 +137,4 @@ Same RMA bottleneck as ADX. The DX formula itself is fully vectorizable.
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## Resources
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- Wilder, J.W. — *New Concepts in Technical Trading Systems* (Trend Research, 1978)
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- PineScript reference: `dx.pine` in indicator directory
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- PineScript reference: `dx.pine` in indicator directory
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