Directional control valves are used to control the direction of fluid flow in hydraulic circuits. They contain ports for fluid to enter and exit, and can be classified based on their construction, number of working ports, switching positions, and actuation mechanism. Common types include poppet valves and spool valves. Directional control valves find application in automatic transmissions, where they control fluid flow to engage and disengage clutches or change gear ratios based on vehicle speed. Proper selection and application of directional control valves is important for efficiently distributing hydraulic power in automotive and industrial systems.