The Minus Directional Indicator: Tracking Negative Momentum for Better Decisions

The Minus Directional Indicator (MINUS_DI) is a powerful technical analysis tool that measures the intensity of downward price movement in a security. By highlighting negative momentum, it helps traders identify potential bearish trends and spot exit or short-selling opportunities. MarketXLS integrates this function smoothly into Excel, minimizing the need for manual calculations and allowing you to make more informed decisions with up-to-date market data.

Why Use This Function?

• Assess Bearish Momentum: Quickly gauge the strength of downward price moves.
• Identify Entry/Exit Points: Incorporate MINUS_DI into your strategy to time potential market fades or short positions.
• Complement Other Indicators: Use in conjunction with ADX, PLUS_DI, SMA, or RSI for broader market analysis.
• Real-Time Data Fetching: MarketXLS automatically retrieves the necessary data, reducing manual work.

How to Use in Excel

MinusDirectionalIndicator(Symbol, [Days], [StartDate])

1. Type “=MinusDirectionalIndicator(” into any cell.
2. Input the “Symbol” (e.g., "AAPL").
3. (Optional) Add a “Days” value to set the period for calculation. Defaults to 14 if omitted.
4. (Optional) Include “StartDate” to calculate from a specific point. If left out, the function uses the latest available data.
5. Close the parenthesis and press Enter.

The function will return:
• A single numeric output of the minus directional indicator for the specified symbol and period.
• “NA” if the symbol is invalid or if insufficient data is found.
• “Refreshing” if MarketXLS is still fetching or updating the data.

Additionally, there is an (undocumented) parameter “series” you could pass as "True" (not typically needed). Doing so can yield a CSV series of historical minus directional indicator values.

Parameters Explained

Example Usage

Basic Examples

1. Current Minus DI for Apple:
   =MinusDirectionalIndicator("AAPL")
   • Uses default 14-day period, no specific start date.
   • Returns the latest negative directional indicator for AAPL.

2. Custom Period Minus DI for Microsoft:
   =MinusDirectionalIndicator("MSFT", "20")
   • Uses a 20-day period.
   • Helpful if you prefer a slightly longer horizon for negative momentum assessment.

3. Specified Start Date for IBM:
   =MinusDirectionalIndicator("IBM", "14", "01-Jan-2022")
   • Calculates the 14-day MINUS_DI starting from January 1, 2022, giving a historical reading.

Advanced Scenarios

1. Using an Earlier Date
   =MinusDirectionalIndicator("TSLA", "14", "01-Jan-1970")
   • If the year is before 1978, the date is omitted, returning the latest value.
   • Useful for quickly reverting to a fresh data pull if older data is not needed.

2. Fetching a Series of Values (Rare)
   =MinusDirectionalIndicator("AAPL", "14", "01-Jan-2022", "True")
   • Returns a CSV series of daily MINUS_DI values starting from January 1, 2022, rather than a single value.
   • Can be exported or parsed for deeper analysis within Excel.

3. Integrating with Other Technical Indicators

   • Combine with the PLUS_DI function to form a more comprehensive directional movement strategy.
   • Use the ADX function in MarketXLS to determine the overall trend strength.

Common Questions and Troubleshooting

1. “Why do I see ‘NA’?”

   • The function may return “NA” if the symbol is invalid, the Day parameter is set to “1,” or if MarketXLS cannot retrieve the data. Double-check your symbol and parameters.

2. “What if the function shows ‘Refreshing’?”

   • MarketXLS is still fetching data. Wait a few moments; the final value should auto-update.

3. “Does the StartDate always apply?”

   • If the StartDate is before 1978, the function reverts to pulling the most recent data. Ensure your date is valid if you want a historical result.

4. “Can I combine MINUS_DI with a moving average?”

   • Yes. Use the output of MinusDirectionalIndicator in an Excel cell, then reference that cell in your SMA or EMA function for a layered strategy.

By incorporating the Minus Directional Indicator into your Excel workflow, you can better pinpoint moments of downward momentum for timely trades. Use it alongside other technical indicators for a well-rounded market perspective, and rely on MarketXLS to conveniently fetch and calculate this data right inside your spreadsheets.