Plus Directional Movement (+DM)
The Raw Bullish Thrust That Powers Wilder's +DI
At the foundation of J. Welles Wilder's Directional Movement System lies Plus Directional Movement (+DM) – the raw capture of pure upside price expansion. It measures how much today's high extended above yesterday's high, representing the bullish rocket fuel before any smoothing or normalizing transforms it into the polished +DI line. While most traders focus on +DI and ADX, examining raw +DM provides an earlier, unfiltered glimpse of when buyers are getting aggressive. It's the heartbeat of bull pressure at its source.
Where +DM Fits in Wilder's Pyramid
The DMI system builds from the ground up:
- +DM and -DM: Raw directional movement values (price units)
- +DI and -DI: Smoothed and normalized versions (0-100 scale)
- ADX: Trend strength meter derived from DI spread
+DM is the first layer – the unprocessed measurement of bullish momentum before any averaging or scaling.
The Calculation – Simple But Powerful
+DM captures upward price expansion:
- +DM = High(today) - High(yesterday) if today's high > yesterday's high
- +DM = 0 if today's high ≤ yesterday's high
- Only counts upward moves, ignoring downward or sideways price action
This raw value is then smoothed (typically with Wilder's smoothing) and normalized by True Range to create +DI.
Why Look at Raw +DM?
While +DI is more polished, +DM offers unique insights:
- Earlier signals: See bullish pressure before smoothing filters it
- Magnitude context: Understand the actual price distance of upward moves
- Noise vs signal: Compare raw +DM to smoothed +DI to gauge market volatility
Practical Applications
- Trend confirmation: Rising +DM alongside rising +DI confirms strong uptrend
- Divergence detection: +DM making new highs while price doesn't suggests underlying strength
- Entry timing: Spikes in +DM can signal aggressive buying before +DI fully reflects it
Key Takeaways
+DM is the raw measurement of upward directional movement before smoothing and normalization.
It provides an unfiltered view of bullish pressure at its source.
While +DI is more commonly used, +DM offers earlier signals and magnitude context.
Understanding +DM helps traders grasp the foundation of Wilder's Directional Movement System.
Plus Directional Movement (+DM)
The Raw Bullish Thrust That Powers Wilder's +DI
At the foundation of J. Welles Wilder's Directional Movement System lies Plus Directional Movement (+DM) – the raw capture of pure upside price expansion. It measures how much today's high extended above yesterday's high, representing the bullish rocket fuel before any smoothing or normalizing transforms it into the polished +DI line. While most traders focus on +DI and ADX, examining raw +DM provides an earlier, unfiltered glimpse of when buyers are getting aggressive. It's the heartbeat of bull pressure at its source.
Table of Contents
Where +DM Fits in Wilder's Pyramid
The DMI system builds from the ground up:
- +DM and -DM: Raw directional movement values (price units)
- +DI and -DI: Smoothed and normalized versions (0-100 scale)
- ADX: Trend strength meter derived from DI spread
+DM is the first layer – the unprocessed measurement of bullish momentum before any averaging or scaling.
The Calculation – Simple But Powerful
+DM captures upward price expansion:
- +DM = High(today) - High(yesterday) if today's high > yesterday's high
- +DM = 0 if today's high ≤ yesterday's high
- Only counts upward moves, ignoring downward or sideways price action
This raw value is then smoothed (typically with Wilder's smoothing) and normalized by True Range to create +DI.
Why Look at Raw +DM?
While +DI is more polished, +DM offers unique insights:
- Earlier signals: See bullish pressure before smoothing filters it
- Magnitude context: Understand the actual price distance of upward moves
- Noise vs signal: Compare raw +DM to smoothed +DI to gauge market volatility
Practical Applications
- Trend confirmation: Rising +DM alongside rising +DI confirms strong uptrend
- Divergence detection: +DM making new highs while price doesn't suggests underlying strength
- Entry timing: Spikes in +DM can signal aggressive buying before +DI fully reflects it
Key Takeaways
+DM is the raw measurement of upward directional movement before smoothing and normalization.
It provides an unfiltered view of bullish pressure at its source.
While +DI is more commonly used, +DM offers earlier signals and magnitude context.
Understanding +DM helps traders grasp the foundation of Wilder's Directional Movement System.
Related Terms
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