Knowledgebase:
AverageDirectionalMovementIndex
Posted by Mohammad Rahhal, Last modified by Rawan Al Hourani on 15 June 2016 02:01 PM

Syntax

Public Function AverageDirectionalMovementIndex(chart_ID As Long, period As Integer) As String

The Welles Wilder's Directional Movement System contains five indicators; ADX, DI+, DI-, DX, and ADXR.

The ADX (Average Directional Movement Index) is an indicator of how much the market is trending, either up or down: the higher the ADX line, the more the market is trending and the more suitable it becomes for a trend-following system. This indicator consists of two lines: DI+ and DI-, the first one being a measure of uptrend and the second one a measure of downtrend.

Detailed information about this indicator and formulas can be found in Welles Wilder's book, "New Concepts in Technical Trading Systems".

The standard Directional Movement System draws a 14 period DI+ and a 14 period DI- in the same chart panel. ADX is also sometimes shown in the same chart panel.

A buy signal is given when DI+ crosses over DI-, a sell signal is given when DI- crosses over DI+.

Parameters

Key Description 
chart_ID Chart identifier, 0 is the current chart ,value of type Long
period The calculation period, on which the indicator will be calculated, value of type Integer.

Return value

Returns the handles of a technical indicator, in case of failure returns an empty string.

Sample

Public Sub main()

AlertMessage (AverageDirectionalMovementIndex(0,14))

'Draws the indicator on chart and shows an Alert Message with the indicator name.

End Sub


See Also


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