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This paper proposes a stereo matching algorithm which employs an adaptive multi-directional dynamic programming (DP) scheme using edge orientations. A new energy function is defined in order to consider the discontinuity of disparity and occlusions, which is minimized by the multi-directional DP scheme. Chain codes are introduced to find the accurate edge orientations which provide the DP scheme with optimal multidirectional paths. The proposed algorithm eliminates the streaking problem of conventional DP based algorithms, and estimates more accurate disparity information in boundary areas. The experimental results using the Middlebury stereo images  demonstrate that our algorithm shows better performance than previous DP based approaches.