The World of Technical Indicators You Do Not Know | Episode 2 Directional Movement [Yasushi Yamanaka]

Moving averages, RSI, and other major indicators watched by many market participants are classic analyses, but they may not necessarily suit you. Here, we have Koji Yamanaka, a professional who deeply analyzes indicators and is highly knowledgeable in hindsight, explain some indicators that do not appear often in this magazine, expanding your perspective and options for deep technical analysis.

Koji Yamanaka Profile

Director at Ascendant. Joined Bank of America in 1982, Vice President in 1989, Proprietary Manager in 1993. Deputy Head of the Foreign Exchange Funds Department at Nikko City Trust Bank in 1999. Founded Ascendant in 2002.

Official Blog：Foreign exchange information delivery site provided by Ascendant/Yamanaka Koji

Twitter：https://twitter.com/yasujiy

※This article is a reprint/re-edit of an article from FX攻略.com March 2021 issue. Please note that the market information described in the main text may differ from the current market.

Technical Indicators That Captivated Wailer

The Directional Movement (DMI) is an indicator that helps determine whether a trend is present or a range-bound market. Like the first installment, it is introduced by J. W. Wilder Jr. in New Concepts in Technical Trading Systems (Japanese title: Wilder’s Technical Analysis Introduction) as the third indicator after “Parabolic” and “Volatility.”

The second volatility is based on TR (True Range). After introducing TR and ATR here, the explanation leads to the next section. At the outset of the DMI explanation, it is stated that DMI is the research that most captivated Wilder and that he spent the most time on. For Wilder, DMI might have been the indicator he had the strongest emotional attachment to among the technical indicators he developed.