Definitions
In plain terms
It uses the same period and staging as smoothed true range so their ratio is aligned.
Technical
The seed sum, first-ready point, zero inputs, missing bars, resets, precision, and revision behavior must match the system contract.
Scope
It retains magnitude but is not yet the normalized +DI line.
Formula
S+DM_t = S+DM_(t-1) - S+DM_(t-1)/n + +DM_tS^+_t=S^+_{t-1}-\frac{S^+_{t-1}}{n}++DM_t| Symbol | Meaning | Unit |
|---|---|---|
S+DM_(t-1) | prior smoothed positive-DM sum | price |
n | Wilder period | observations |
+DM_t | current positive directional movement | price |
Output unit: price
Examples
- A governed lesson calculates or identifies Wilder Smoothed Positive DM only after its parameters, state, timing, and edge cases are declared.
Common misconceptions
- It retains magnitude but is not yet the normalized +DI line.
Concept relationships
Where this concept is used
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
- evidence reviewed
This record is evidence-reviewed and readable, but not yet promoted to published — it is served noindex,follow and excluded from the sitemap.