The STP Directional Movement Index indicator identifies the direction of the asset price by comparing the prior highs and lows of the previous price range. When the fast moving average (white line) crosses above the middle band (orange line) this signals upwards pressure on the price. Likewise, when the fast moving average (white line) crosses below the middle band (orange line) this signals downwards pressure on the price. This indicator will help traders assess the trend direction.
