Directional Movement Index (DX)

DX measures the difference between +DI and -DI (Directional Indicators) normalized by their sum: DX = 100 × |+DI - -DI| / (+DI + -DI). DX ranges from 0 to 100, measuring the strength of directional movement regardless of direction. High DX values (above 25) indicate strong directional movement (either up or down); low values (below 20) indicate weak directional movement. DX is the foundation component for ADX (Average Directional Index), which is a smoothed version of DX. Default 14-period calculation.

Cryptocurrency traders use DX for raw trend strength measurement before smoothing. While ADX is more commonly used (being a smoothed DX), raw DX shows immediate trend strength changes without lag. High DX readings confirm strong trends worth trading; low readings suggest ranging markets better for mean-reversion. Because DX can be volatile, it's often smoothed into ADX for practical trading. DX is useful for understanding ADX's underlying calculation and for building custom trend strength indicators. Combine with +DI/-DI to add direction to DX's strength measurement. Popular among technical analysts understanding ADX components.