The Directional Movement Index (DMI) is a method of telling whether or not a security is trending. Invented in the late 1970s, the DMI helps investors determine whether or not a security is actually trending up or down, canceling out market “noise” that could be mistaken for trending.
The DMI takes into account the price range of trading (highs and lows) and calculations like the Welles Wilder’s Smoothing Average to find which way (if any) a stock is going. The DMI puts small windows of time into the larger context, helping traders have some idea of whether the stock is trending up or down. While there are many methods of analyzing stocks, the DMI is a basic one that’s used to this day for its baseline-like measures.
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Finance: What is Trading Volume?29 Views
finance a la shmoop what is training volume training volume with a lot of
volume and this is trading with okay yeah yeah you get the idea [Man shouting into megaphone]
volume here is not about number 11 on the dial but rather about the number of [Person turning up volume dial]
shares trading back and forth on a given day week hour a month and generally
speaking higher levels of volume are a relatively bullish sign for the market [Water pouring]
on all else being equal that is optimistic investors are putting money
into the system buying up stocks and contributing liquidity like they are [Investor money transfer to stock market]
seeking risk they're hopeful they're optimistic lots of volume high liquidity
low volume low liquidity and high is good
Inessa not just a california proposition 64 thing high volumes are attractive to [People protesting for cannabis]
large institutional professional traders and investors because there remains the
perception that if they want to sell a given position well then with high
volumes they can get out quickly so they feel less hesitation about getting in
quickly okay good just checking [Man shouting into megaphone]
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