I have checked it and found that it is a strange beast that has little in common with the DMI created by Welles Wilder.
My personal impression is that it just miscalculates the DMI. First, it uses simple moving averages. Everybody who has read the work by Welles Wilder knows that he never used simple moving averages, because exponential moving averages are easier to calculate by hand. Also there is an omission in the code, as the DMI uses the absolute amount of the difference between diPlus and diMinus, and not the difference itself.
The result is a strange oscillator that has little in common with the DMI. Where does this formula originate from, and what is it good for? How does it come that it shows negative values, where the original DMI uses a scale from 0 to 100? The DMI is a non-directional indicator, whereas the NinjaTrader version is a directional momentum indicator.
Please see chart attached.
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