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DirectionalMotion(String,Series) Method
See Also 
dotnetCHARTING Namespace > FinancialEngine Class > DirectionalMotion Method : DirectionalMotion(String,Series) Method


seriesName
The name of the series which will be displayed on the chart, i.e. its label.
s
A financial series where the first element contain the prices of last trading period, the second element represents the prices of the previous periods and so on. Please note that in order to calculate this indicator the elements of the financial series must contain High, Low and Close values.
Calculates the Directional Indicator which forms the main part of the Directional Movement System developed by Wellas Wilder.

Syntax

Visual Basic (Declaration) 
Overloads Public Shared Function DirectionalMotion( _
   ByVal seriesName As String, _
   ByVal s As Series _
) As Series
Visual Basic (Usage)Copy Code
Dim seriesName As String
Dim s As Series
Dim value As Series
 
value = FinancialEngine.DirectionalMotion(seriesName, s)
C# 
public static Series DirectionalMotion( 
   string seriesName,
   Series s
)

Parameters

seriesName
The name of the series which will be displayed on the chart, i.e. its label.
s
A financial series where the first element contain the prices of last trading period, the second element represents the prices of the previous periods and so on. Please note that in order to calculate this indicator the elements of the financial series must contain High, Low and Close values.

Return Value

A series with the k-th term corresponds to the DM of the k-th Bar. That is, where the PDM and MDM parameters where both evaluated with respect to the last two trading periods.

Remarks

This indicator is generally evaluated using 14 periods and is used with the PlusDirectionalMovement and MinusDirectionalMovement indicators.

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.

See Also