DMI Indicator Practical Guide: Understand How to Read the Long and Short Lines in One Minute

When trading, the worst thing is not understanding the trends. The DMI indicator is a tool that helps you determine the comparative strength of buyers and sellers. In simple terms, it's a game of three lines:

PDI (Blue Line) = Bullish Strength, MDI (Red Line) = Bearish Strength

Seeing the crossover is key:

• PDI crossing MDI from bottom to top = Golden Cross, bulls are about to take off, consider entering the market.
• MDI crossing PDI from below = Death cross, bearish momentum, be careful of being trapped.

These signals are more valuable:

1. Will PDI drop below 20 and then surge above 50? The medium-term increase could be significant.
2. PDI and MDI are fluctuating around 20? Don't move, the market is consolidating, and the success rate is at its lowest during this time.
3. When PDI, ADX, and ADXR simultaneously drop below 50 but fluctuate within the 40-60 range? Wait, this is usually the accumulation phase for strong coins.

Strongest Signal: When PDI, ADX, and ADXR are all below 50 but suddenly diverge upwards, it indicates that the bulls have truly arrived, and you can follow up or increase your position.

⚠️ But don't forget: in a consolidation market where the trend is not obvious, DMI is basically ineffective and should be used in conjunction with the moving average system.

Let's take a look at the performance of mainstream coins: BTC is up 1.5%, ETH is up nearly 2%, and DOGE's increase is slightly less - this wave of rotation is still ongoing.