A directional movement indicator, or DMI, shows trends in stocks to anticipate future performance. Based on the trends, investors can better predict when to buy, hold or sell stocks. J. Wells Wilder developed the mathematics behind the stock trending in 1978, and his work continues to be one of the most popular trending models for stocks.

DMI stock trend information possesses three components. DMI+ or DI+ follows the positive directional indicators, DMI- or DI- measures downward movements and ADX or average directional index combines the two other indexes. Use points where the DI+ and DI- cross as signals for buying and selling stocks.

You can obtain and use DMI stock trends information in several ways:

1. See how to use DMI stock trends information.

2. Find DMI stock trends for specific stocks.

3. Get stock prediction software to bring DMI stock trends to your computer.

Action Steps
The best contacts and resources to help you get it done

Look to past DMI stock trends to predict the future

Get more information on the math behind the trends. Several online charts are available that can help you figure out when to buy, hold or sell your stocks. Learn what DMI+, DMI- and ADX mean to your stock purchases.

I recommend: Take a look at Stockwerld's DMI page to get a feel for DMI+, DMI- and ADX and how to know when to buy stock and when to sell based on these indicators. Then get DMI stock trends training from Stockcharts.com. This site contains graphics of actual stock prices versus the DMI+, DMI- and ADX showing the strengthening and weakening trends of popular stocks.

Find advice from a DMI stock trends consultant online

Get specific information on stocks you want by reading DMI stock trends. At your fingertips, you can access the DMI+, DMI- and ADX to help you make buying and selling decisions.

I recommend: Use Trending123 to get help with DMI stock trends for any stock or bond. Just type in or click on the stock to get trending information, including graphs for +DI, -DI and ADX. Or find the +DI, -DI and ADX for any stock you choose on the Vector2000 website. It lets you set up your parameters for the specific chart overlay you want to add.

Use software to get help with DMI stock trends

Download software to assist you with your stock analysis. Many of these offer free trials and are available for both Macs and personal computers.

I recommend: Try Trendsetter Software and get DMI stock trend advice at your fingertips. Download a free trial or sign up for the software, which runs on your Mac computer. Or get Track 'n Trade from Gecko Software for your Windows PC. The site includes lessons on buy/sell DMI indicators, screen shots of the data, mathematical computations and software to download.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Try out your DMI stock trend information with an online stock trading account. Some have demo versions you can try for free before jumping into the stock market.