This paper describes and analyses the performance of a novel feature extraction technique for the recognition of segmented/cursive characters that may be used in the context of a segmentation-based handwritten word recognition system. The modified direction feature (MDF) extraction technique builds upon the direction feature (DF) technique proposed previously that extracts direction information from the structure of character contours. This principal was extended so that the direction information is integrated with a technique for detecting transitions between background and foreground pixels in the character image. In order to improve on the DF extraction technique, a number of modifications were undertaken. With a view to describe the character contour more effectively, a re-design of the direction number determination technique was performed. Also, an additional global feature was introduced to improve the recognition accuracy for those characters that were most frequently confused with patterns of similar appearance. MDF was tested using a neural network-based classifier and compared to the DF and transition feature (TF) extraction techniques. MDF outperformed both DF and TF techniques using a benchmark dataset and compared favourably with the top results in the literature. A recognition accuracy of above 89% is reported on characters from the CEDAR dataset.