mirror of
https://github.com/mihakralj/QuanTAlib.git
synced 2026-08-17 18:18:04 +00:00
32 lines
1.3 KiB
Markdown
32 lines
1.3 KiB
Markdown
# MINUS_DI: Minus Directional Indicator
|
||
|
||
### TL;DR
|
||
Measures downward directional movement strength as a percentage (0-100).
|
||
|
||
## Introduction
|
||
The Minus Directional Indicator (-DI) measures the strength of downward price movement relative to the true range. It is one of the components of the Directional Movement System developed by J. Welles Wilder Jr.
|
||
|
||
When -DI is rising, downward price pressure is increasing. When -DI crosses above +DI, it signals a potential bearish trend. The -DI line is commonly plotted alongside +DI to visualize directional balance.
|
||
|
||
## Calculation
|
||
-DI = Smoothed(-DM) / Smoothed(TR) × 100
|
||
|
||
Where:
|
||
- -DM (Minus Directional Movement) = max(PrevLow - Low, 0) when PrevLow - Low > High - PrevHigh, else 0
|
||
- TR (True Range) = max(High - Low, |High - PrevClose|, |Low - PrevClose|)
|
||
- Smoothing uses Wilder's method: Smooth = Smooth - Smooth/N + Input
|
||
|
||
## Parameters
|
||
| Parameter | Default | Range | Description |
|
||
| :--- | :--- | :--- | :--- |
|
||
| Period | 14 | 2-∞ | Wilder smoothing period |
|
||
|
||
## Interpretation
|
||
- **Rising -DI:** Strengthening downward movement
|
||
- **-DI > +DI:** Bears dominate; potential downtrend
|
||
- **-DI crossover above +DI:** Bearish signal
|
||
- **High -DI (>40):** Strong downward momentum
|
||
|
||
## References
|
||
- Wilder, J. Welles Jr. "New Concepts in Technical Trading Systems" (1978)
|