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Directional Movement Index (DMI)


There are basically two ways to use the Momentum indicator:

Momentum indicator

You can use the Momentum indicator as a trend-following oscillator similar to the Moving Average Convergence/Divergence (MACD). Buy when the indicator bottoms and turns up and sell when the indicator peaks and turns down. You may want to plot a short-term moving average of the indicator to determine when it is bottoming or peaking. 

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