Abbreviation: DMI Avg
Category: Price Momentum Indicators: Smoothed
Input Parameters:

 
Calculation:

Avg(X, Avg Periods)

where
X = DMI(High Price, Low Price, Closing Price, DMI Periods)

DMI represents Directional Movement Index (DMI)
Avg represents Simple Moving Average

 
Discussion:

This indicator attempts to smooth the Directional Movement Index indicator by calculating its moving average. Since it uses a simple moving average (which gives equal importance to all the periods within the moving average’s time frame), this method of smoothing may cause more of a lag time than the exponential variant.
Difference between NeuroShell’s DMI indicator and Wilder’s Original DMI:

Note that NeuroShell’s DMI indicator is based upon TradeStation’s DMI implementation and is therefore different from Wilder’s original. The DMI uses an exponential moving averages (EMA). NeuroShell Trader’s EMA period has a different meaning as compared to Wilder’s original EMA period, because Wilder used a different type of EMA. Here is how they relate to each other:

NeuroShell Trader’s EMA period = Wilder’s EMA period * 2 – 1 

This applies to the DMI Periods parameter.

For example, suppose you want to match Wilder’s indicator using two periods of 14 bars each. To be able to re-create the results in NeuroShell Trader, you should use 14*2-1=27 bar periods for the DMI periods.

NeuroShell Trader’s version of DMI matches Wilder’s when you use (Wilder’s EMA period * 2 – 1) value for the period parameter.