FTB-C000362 / Indicator

Directional Movement System

Directional Movement System is Wilder's framework that assigns winning range expansion to positive or negative movement and normalizes smoothed movement by smoothed true range.

Also known asDMI system

Advanced 1 linked topicPublished

Definitions

In plain terms

It produces +DI, -DI, DX, and the downstream ADX strength measure.

Technical

The full contract freezes one-bar rules, strict ties, Wilder sum seeds, period, zero denominators, readiness, missing bars, and revisions.

Scope

It separates direction and strength; one output cannot substitute for the entire system.

Examples

  • A governed lesson calculates or identifies Directional Movement System only after its parameters, state, timing, and edge cases are declared.

Common misconceptions

  • It separates direction and strength; one output cannot substitute for the entire system.

Concept relationships

Prerequisites

Related

Where this concept is used

Tutorials planned

These catalogued topics use this concept, but their complete build has not shipped yet.

  • D07-F02-A04 Primary

Evidence and governance

  1. New Concepts in Technical Trading Systems J. Welles Wilder Jr. · first party methodology

    Supports: preferred label, short definition, technical definition

    Limits: The bibliographic page alone is not an executable specification; equality, seeds, and state transitions require pinned rules.

  2. New Concepts in Technical Trading Systems J. Welles Wilder Jr. · first party methodology

    Supports: historical attribution

    Limits: The bibliographic page alone is not an executable specification; equality, seeds, and state transitions require pinned rules.

Reviewed by
fintech-builder-batch-007
Last reviewed
2026-07-27
Next review
2027-07-27
Record status
published
Written by

Fintech engineer building market-data and financial systems, and the author of every article, glossary record, and reference implementation on The Fintech Builder.