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Miha Kralj
32 lines
1.3 KiB
Markdown
32 lines
1.3 KiB
Markdown
# PLUS_DI: Plus Directional Indicator
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### TL;DR
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Measures upward directional movement strength as a percentage (0-100).
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## Introduction
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The Plus Directional Indicator (+DI) measures the strength of upward price movement relative to the true range. It is one of the components of the Directional Movement System developed by J. Welles Wilder Jr.
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When +DI is rising, upward price pressure is increasing. When +DI crosses above -DI, it signals a potential bullish trend. The +DI line is commonly plotted alongside -DI to visualize directional balance.
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## Calculation
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+DI = Smoothed(+DM) / Smoothed(TR) × 100
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Where:
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- +DM (Plus Directional Movement) = max(High - PrevHigh, 0) when High - PrevHigh > PrevLow - Low, else 0
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- TR (True Range) = max(High - Low, |High - PrevClose|, |Low - PrevClose|)
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- Smoothing uses Wilder's method: Smooth = Smooth - Smooth/N + Input
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## Parameters
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| Parameter | Default | Range | Description |
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| :--- | :--- | :--- | :--- |
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| Period | 14 | 2-∞ | Wilder smoothing period |
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## Interpretation
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- **Rising +DI:** Strengthening upward movement
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- **+DI > -DI:** Bulls dominate; potential uptrend
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- **+DI crossover above -DI:** Bullish signal
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- **High +DI (>40):** Strong upward momentum
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## References
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- Wilder, J. Welles Jr. "New Concepts in Technical Trading Systems" (1978)
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