The DI function is part of the Directional Movement System, primarily used to calculate the Directional Index (DI) which is a component of the Average Directional Index (ADX). The DI function helps in identifying the strength of a price trend by calculating the difference between the Plus Directional Indicator (DI+) and the Minus Directional Indicator (DI-).

Syntax:

DI[N](price)

Parameters:

• N: The number of periods over which the DI is calculated.
• price: The price input (typically close price) used to calculate DI+ and DI-.

Example:

myDI = DI[14](close)

This example calculates the DI value using the closing price over the last 14 periods.

Additional Information:

The DI function is crucial for traders who use technical analysis to gauge the strength of a market trend. DI+ indicates upward price movement, while DI- indicates downward price movement. The DI function, by calculating the difference between these two indicators, provides a value that can help in assessing the overall direction and strength of the trend. A positive DI value typically suggests an upward trend, whereas a negative DI value may indicate a downward trend.

Understanding and using the DI function can be an essential part of a technical analyst’s toolkit, especially when combined with other components of the ADX to analyze market trends more comprehensively.