Directional Movement: Long-Term Trend and Market Directivity

Summary

This brief description introduces a directional movement indicator developed by Wilder as an improvement to the PTP indicator. It presents two intended uses: identifying the market’s longer-term trend and showing how strongly price movement is directed. The latter can help distinguish a clear directional market from one with weaker or less consistent movement.

The document provides no calculation rules, parameter guidance, charts, trading signals, or empirical performance evidence. It therefore serves as a high-level description of the indicator’s purpose rather than a practical implementation or validated strategy. Readers would need a fuller specification before using it to generate or evaluate trades.

Key ideas

• The indicator is described as a Wilder development intended to improve on PTP.
• Its stated purpose includes identifying a market’s long-term trend.
• It also aims to convey the degree of directional movement.
• The brief description gives no formula or performance evidence.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.