What is Plus DI?
The Directional Indicator was developed in 1978 by J. Welles Wilder as an indicator of trend strength in a series of prices of a financial instrument. +DI represents an absolute up movement and Minus DI represents absolute down movement. Here please note that “+” and “-” denotes only upward and downward movement. “-DI” is not a negative number. But a positive number of a downward movement.
Plus DI Indicator
The +DI is a momentum indicator and is a component within the Average Directional Index (ADX). The indicator is used to measure the presence and strength of an uptrend.
How to calculate the Plus DI Indicator
Formula:- upmove = high – high(-1)
- downmove = low(-1) – low
- +dm = upmove if upmove > downmove and upmove > 0 else 0
- +di = 100 * SimpleMovingAverage(+dm, period) / atr(period)
Why Use Plus DI Indicator
The +DI indicator’s position tells us about the market trend. If the +DI is greater than -DI, it showcases a bullish trend. On the other hand, when -DI stands bigger than +DI, it is a bearish trend. However, when +DI is greater than -DI there is said to be a bullish trend. When -DI is above +DI the price is in a bearish trend.
How to Use Plus DI Indicator
Bullish Scenario:- Since +DI is the measure of the strength of the uptrend a high value will mean a strong uptrend hence a bullish scenario
Bearish Scenario:- Similarly a low value of +DI will mean a weak uptrend or even downtrend hence resulting in a bearish trend.
Building Plus DI Strategy in Mudrex
Strategy:-
BUY:- +DI(14 days) crosses up +DI(30 days)
SELL:- +DI(14 days) crosses down +DI(30 days)
TIME FRAME:- 6Hrs
Creating on Mudrex:-
We will use 2 +DI compare blocks. One for selling and One for buying.
For buying we will use the following settings:-
For selling we will use the following settings:-
Final Strategy:-
Testing:-
Running on Binance Futures: BTC/USDT with tick interval of 6H yielded an overall profit of 82.26%
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