Hi,
the way WLD calculates the indicator DIplus (and ADX) is described here:
http://www2.wealth-lab.com/WL5WIKI/Default.aspx?Page=DIPlus&NS=&AspxAutoDetectCookieSupport=1>>>>>>>> Calculation <<<<<<<<<<<
+DI = Round( ( +DM / TR ) * 100 )
where,
DI+ = DIPlus
TR = TrueRange of current bar
The +DI is then smoothed over the period specified, the same way as a simple moving average, and +DM is calculated as follows:
1. For up trending days, +DM = today's high - yesterday's high
2. For down trending days, +DM = zero
3. For inside days, +DM = zero
4. For outside days, if today's high - yesterday's high, is greater than yesterday's low- today's low, then +DM = today's high - yesterday's high, otherwise +DM = zero
5. For upwards gap days, +DM = today's high - yesterday's high
6. For downwards gap days, +DM = zero
>>>>>>>>>> END <<<<<<<<<<<
I wanted to check the way DIplus is calculated but I can't figure out what the exact formulars look like in steps 1 to 6. What do especially "trending day", "inside/outiside day" and "gap day" exactly mean?
Thanks for your help!
Egon