Wells Wilder created the directional movement indicator that has become know as DMI+ and DMI- and is found in all trading software. However the TradeStation implementation is not what Wilder envisioned. In the example below you can see the Wilder implementation in cyan and magenta and the TradeStation in red and blue. Three times in November, the TradeStation red and blue lines momentarily cross giving you nasty whipsaws, whereas the cyan and magenta lines never cross. Now you can use the DMI the way Wells Wilder originally envisioned it. It is the foundation of the ADX and ADXR so if you don't have the DMI right your ADX will be off as well.
