'Declaration Public Overloads Shared Function DirectionalMotion( _ ByVal sc As SeriesCollection _ ) As SeriesCollection
'Usage Dim sc As SeriesCollection Dim value As SeriesCollection value = FinancialEngine.DirectionalMotion(sc)
public static SeriesCollection DirectionalMotion( SeriesCollection sc )
Parameters
- sc
- A collection of financial series objects. For example, to evaluate this indicator for two series you will need to pass a series collection containing this two series.Please note that in order to calculate this indicator the elements of the financial series must contain High, Low and Close values.
Return Value
Evaluation
The Directional Movement Indicator can be summarized by the following formula:
Directional Movement Indicator = 100 * ( (PDM - MDM) / (PDM + MDM) ),
where PDM is the Plus Directional Movement (PDM) indicator over the last two trading periods which can be evaluated using PlusDirectionalMovement and MDM is the Minus Directional Movement (MDM) indicator over the last two trading periods which can be evaluated using MinusDirectionalMovement.
Interpretation
The directional indicator has a range of [0,100], where to higher the value returned the stronger the trend is said to be. If a trend is reliable then the smoothed directional lines (PDM and MDM) will diverge and the indicator will increase. If on the other hand a trend starts to fail and price whip-saws (for example with price is within a trading range) the difference between the smoothed direction lines will decrease and the overall index will decrease.
Target Platforms: Windows 7, Windows Vista SP1 or later, Windows XP SP3, Windows Server 2008 (Server Core not supported), Windows Server 2008 R2 (Server Core supported with SP1 or later), Windows Server 2003 SP2