The Directional Movement Index (DMI) is a technical indicator developed by J. Welles Wilder that identifies whether a market is trending and measures the strength of that trend. It consists of three components: the Positive Directional Indicator (+DI), the Negative Directional Indicator (-DI), and the Average Directional Index (ADX).
Example
“The DMI showed the +DI crossing above the -DI while the ADX rose above 25, indicating a strong bullish trend and prompting the trader to enter a long position.”