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Directional Movement Index — DMI is applied to find out if there is trend on market and what is its strength. Author of the indicator is J. Welles Wilder young. Also indicator generates signals for opening of positions with the help of two lines: DMI plus (DMI+), a positively directed indicator, and DMI minus (DMI-) - a negatively directed indicator. A signal for purchase is crossing of DMI+ by DMI- from bottom to top, whereas signal for sale is crossing of DMI- by DMI+ from top to bottom. The line which is finally above will perform as dominating and shows direction of market. The bigger split between lines is, the stronger trend is.
Typical Price of Moving Average represents a combination of a Simple Moving Average and Pivot Point Method. With the help of this indicator, an average price for a certain time cutting is determined. Resulted value is further matched with present price and moments for opening trades are defined. Signal for purchase is when Typical Price Moving Average crosses price chart from bottom to top. If moving average crosses price chart in the opposite direction, it is a signal for sale. Also Typical Price of Moving Average is able to serve as resistance or support level.
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