+DI/-DI Lines
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Key Takeaway
The +DI and -DI lines are the directional components of the Directional Movement System, measuring upward and downward price movement separately to indicate trend direction alongside ADX trend-strength readings.
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What Is +DI/-DI Lines?
The +DI and -DI lines are the directional components of the Directional Movement System, measuring upward and downward price movement separately to indicate trend direction alongside ADX trend-strength readings.
How +DI/-DI Lines Works
Frequently Asked Questions
How do the +DI and -DI lines generate trading signals?
The primary signal from the DI lines is the crossover: when +DI crosses above -DI, it indicates that upward directional movement has become stronger than downward directional movement, generating a bullish signal. When -DI crosses above +DI, the reverse is true, generating a bearish signal. Wilder's original system entered long on a +DI crossover above -DI and exited or reversed on a -DI crossover above +DI. These signals become significantly more reliable when ADX is above 25 and rising, confirming that the crossover is occurring within a genuine trending environment rather than a directionless, choppy market phase.
Can the +DI and -DI lines be used without ADX?
The DI lines can technically be read without ADX, but doing so significantly reduces signal quality. DI crossovers occur frequently in both trending and ranging markets. In ranging conditions, the lines cross back and forth repeatedly without establishing sustained directional momentum, generating a series of false signals that can produce consistent small losses. ADX acts as the filter that distinguishes meaningful DI crossovers — those occurring when a real trend is developing — from random directional noise in low-momentum market phases. The Directional Movement System was designed as a three-component framework, and using only two components removes an important quality filter.
What does a very high +DI reading with a very low -DI reading indicate?
A very high +DI reading alongside a very low -DI reading indicates dominant, one-sided upward directional movement. Price is consistently reaching higher highs relative to previous highs, with minimal downward directional pressure. This configuration typically accompanies a high ADX reading, confirming a strong uptrend with clear directional conviction. The wider the spread between +DI and -DI in the upward direction, the stronger the evidence of bullish trend dominance. However, very wide spreads sustained over long periods can also indicate trend maturity, and traders should monitor ADX trajectory for signs that trend strength is beginning to peak.
Common Misconceptions About +DI/-DI Lines
The +DI and -DI lines show whether an asset's price is rising or falling right now
The +DI and -DI lines measure the relative strength of upward versus downward directional movement over a smoothed lookback period — they do not show instantaneous price direction. A +DI above -DI means that upward directional movement has been stronger than downward directional movement across the indicator's calculation window, indicating a generally bullish trend environment. It does not mean price is currently rising on this specific bar. Short-term pullbacks within an uptrend can occur while +DI remains above -DI, because the smoothing process prevents the indicator from reacting to every minor price fluctuation.
A +DI/-DI crossover is a reliable standalone buy or sell signal
DI crossovers generate many false signals when used without ADX confirmation. In ranging or directionless markets, the +DI and -DI lines oscillate around each other frequently, producing crossovers that do not develop into sustained trends. Treating every DI crossover as an actionable entry creates a system with high trade frequency but poor signal quality. Wilder's original framework explicitly required ADX context — ideally above 20 to 25 and rising — before DI crossovers were considered meaningful trend signals. The crossover alone confirms a directional shift; ADX confirms whether that shift is occurring within a genuine trending environment.
+DI and -DI values above 50 indicate an extremely strong trend
High absolute DI values reflect strong directional movement within the indicator's smoothed calculation, but DI readings should not be interpreted using threshold levels the way RSI or ADX readings are. The meaningful signals from DI lines come from their relative position to each other — which is above which — and from their crossovers, not from absolute threshold levels. ADX is the component of the Directional Movement System that provides the trend-strength quantification with threshold-based interpretation. Attempting to apply fixed significance thresholds to raw DI values produces misleading conclusions not supported by Wilder's original design.