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Directional Movement Oscillator

The directional movement oscillator converts the two lines of the DMI (Directional Movement Index) into a single oscillator that fluctuates above and below zero. A directional movement oscillator is calculated by subtracting the -DI from the +DI.

If +DI is greater than -DI, the directional movement oscillator value is positive. If +DI is less than -DI, the value is negative.

The signals provided by the directional movement oscillator and the DMI are identical.

For more information on the DMI study and its formula, see Directional Movement Index.

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see, Wilder, J. W., Jr., New Concepts in Technical Trading Systems, McLeansville, NC: Trend Research, 19xx.