The DMI Directional Movement Forex MT4 Indicator is a popular trend trading indicator developed by J. Welles Wilder.
It’s often used by Forex trend traders and hundreds of systems and strategies are based on the DMI indicator.
The indicator can be used as a standalone or combined with oscillators to pinpoint entries in existing currency trends.
Scalpers and day traders use DMI with overbought/oversold oscillators to enter trades multiple times a day in the direction of the trend.
Just load the DMI indicator onto the MT4 chart and start trading with it in minutes.
Key Takeaways
- A buy signal occurs when the green DMI+ signal line crosses the red DMI- signal line upward.
- A sell signal occurs when the red DMI- signal line crosses the green DMI+ signal line upward.
- Good win rate in a trending environment, often exceeds 75%.
- Developed by J. Welles Wilder. Use in the Forex, Stock and other financial markets.
- Works for scalping, day trading and swing trading.
Feel free to explore the DMI Directional Movement indicator’s different parameters and settings to create your own personalized indicator setup.
Download This MT4 Forex Indicator Free
Download the “dmi-alert-indicator.ex4” Metatrader 4 indicator
Indicator Example Chart (EUR/USD H1 Chart Example)
Here’s an example of how the indicator should look like when loaded onto the Metatrader 4 chart.
Finding Buy and Sell Triggers With The DMI Directional Movement MT4 Forex Indicator
Buy Signal: Execute a buy trade when the green DMI+ signal line crosses above the red DMI- signal line from below. In this scenario, the trend is considered to go up.
Set your stop loss below the previous swing low price or consolidation, or use your own favorite stop loss method.
Take your profit when a sell signal occurs on the chart (DMI- > DMI+), or use your own favorite take profit method.
Sell Signal: Execute a sell trade when the red DMI- signal line crosses above the green DMI+ signal line from below. In this scenario, the trend is considered to go down.
Set your stop loss above the previous swing high price or consolidation, or use your own favorite stop loss method.
Take your profit when a buy signal occurs on the chart (DMI+ > DMI-), or use your own favorite take profit method.
Download This Forex Indicator Now
Download the “dmi-alert-indicator.ex4” MT4 indicator
Adjustable Parameters
Smooth, hide Di plus, hide DI minus, hide DX, hide ADX, pop-up alerts, sound alert, colors, width, style.
More Info About This Indicator
Tradable Currency pairs: Any
Trading Platform: MT4
Time frames: M1, M5, M15, M30, H1, H4, D1, W1
Indicator Type: trend
Installation
Copy and paste the indicator in the MT4 indicators data folder.
Then restart the MT4 terminal and attach it to any chart.
