−DI (negative directional indicator)
The −DI measures the strength of downward directional movement in Welles Wilder's ADX system, by relating bearish price extensions to volatility.
The −DI (Negative Directional Indicator) is the bearish mirror of the +DI in Wilder's directional system. Each period, negative directional movement (−DM) is measured: the drop of the low below the previous low, kept only if it exceeds the advance of the high. These −DM values are smoothed over 14 periods and divided by the Average True Range. The −DI thus expresses the share of market movement happening to the downside, regardless of absolute price levels.
How to read and use it
A −DI holding above the +DI characterises a seller-dominated market. The −DI crossing above +DI is the system's classic sell signal, all the more credible when the ADX rises alongside it : a sign that a downtrend is gathering strength. Conversely, a −DI dropping back below +DI often marks the end of a corrective phase. In Screener.Trading, you can build a rule that spots the −DI/+DI cross to detect assets entering a bearish phase, or use it as an exclusion filter to remove from your results any asset whose directional movement remains bearish.
In a tight range, +DI and −DI cross frequently without follow-through: require a rising ADX to keep only the crosses that lead to an actual trend.
Keep exploring
- FeatureThe multi-indicator, multi-timeframe screenerCombine technical indicators, timeframes and comparison operators to keep only the assets that match your strategy exactly.
- IndicatorADX (Average Directional Index)The indicator that answers the question that comes before all others: is there a trend? Its +DI and -DI lines then reveal its direction.
- IndicatorATR (Average True Range)The reference indicator for measuring volatility: it tells you how much an asset moves per candle on average, saying nothing about direction.
- Glossary+DI (positive directional indicator)The +DI measures the strength of upward directional movement in Welles Wilder's ADX system, by relating bullish price extensions to volatility.
- GlossaryTimeframeA timeframe is the duration each candle on a chart represents (from one minute to several months) and sets the horizon of the analysis.
- GuideBuilding your first screener, step by stepHow to turn a strategy idea into objective rules, pick the right asset universe, read scan results and iterate until you get a genuinely actionable list of opportunities.