Negative Directional Indicator (-DI)

The Negative Directional Indicator (-DI) is a technical indicator used in technical analysis that measures the strength of a downtrend. It is calculated by subtracting the 14-day Simple Moving Average (SMA) of the price from the 20-day SMA of the price. The -DI is plotted on a chart below the zero line, and it typically ranges between 0 and 100.

A rising -DI indicates that the downtrend is losing strength, while a falling -DI indicates that the downtrend is gaining strength. The -DI can be used to identify potential reversals in the trend. When the -DI crosses above the zero line, it indicates that the downtrend may be ending and a bullish reversal may be underway. Conversely, when the -DI crosses below the zero line, it indicates that the downtrend may be continuing and a bearish reversal may be underway.

The -DI is often used in conjunction with other technical indicators, such as the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI), to help identify potential trading opportunities.

Here are some additional points to keep in mind about the -DI:

• The -DI is a lagging indicator, which means that it does not provide real-time information about the market.
• The -DI is not as sensitive to changes in price as other technical indicators, such as the MACD and the RSI.
• The -DI can be used to identify potential reversals in the trend, but it is not always accurate.

Overall, the -DI is a useful technical indicator that can be used to help identify potential trading opportunities. However, it is important to remember that the -DI is a lagging indicator and that it is not always accurate.