By Islam BarakaDefinitions
In plain terms
It expresses downward range expansion relative to total gap-aware range on a percentage scale.
Technical
The two smoothed inputs must be aligned and the zero true-range policy, readiness, precision, and missing-bar handling must be declared.
Scope
A high -DI is directional participation, not a standalone strength or return forecast.
Formula
-DI = 100 * smoothed -DM / smoothed TR-DI_t=100\frac{S^-_t}{STR_t}| Symbol | Meaning | Unit |
|---|---|---|
S-DM | smoothed negative directional movement | price |
STR | smoothed true range | price |
Output unit: percent
Examples
- A governed lesson calculates or identifies Negative Directional Indicator only after its parameters, state, timing, and edge cases are declared.
Common misconceptions
- A high -DI is directional participation, not a standalone strength or return forecast.
Concept relationships
Required by
Where this concept is used
Tutorials planned
These catalogued topics use this concept, but their complete build has not shipped yet.
- D07-F02-A04 Important
- D07-F02-A05 Important
Evidence and governance
- TA-Lib Directional Movement Index Implementation TA-Lib · first party technical publication
Supports: preferred label, short definition, technical definition, formula
Limits: Zero-denominator and compatibility behavior can differ from the Fintech Builder package and must be stated explicitly.
- Reviewed by
- fintech-builder-batch-007
- Last reviewed
- 2026-07-27
- Next review
- 2027-07-27
- Record status
- published