Thursday, March 19, 2009

The degree of directional movement (ADXR)

At the top of the charts submitted to the daily schedule for "Brooks Automation Inc." (BRKS). The middle panel shows ADXR black line, which was built together with the indicator of the average thrust (ADX), displayed a blue line. In the lower part we see a direction indicator that shows the line DI + green line and the DI-red.

Formula

ADXRi = (ADXi + ADX (i - n)) / 2
Where n - interval ADXR

Description

The degree of directional movement quantitatively determine the change in momentum in the ADX. It is calculated by adding the two values of ADX (current value and the value n periods ago), then divided by two. This additional smoothing makes ADXR slightly less sensitive than ADX. Interpreting it is the same as that of the ADX: the higher the value, the stronger the trend. ADXR is a smoothed version of ADX and can be used like the ADX.
ADXR measures the difference between the direction indicator (+ DI and-DI). When ADXR decreasing, this implies that one should not use the system are following the trend. However, increasing ADXR signals that the dominant trend is likely to continue. Rising ADXR, for ADXR and DI +, DI-being above points to the strengthening of bovine market. This condition can be written as follows:

ADXR> DIMINUS AND DIPLUS> DIMINUS AND ADXR> ADXR.1 rising ADXR, for ADXR and DI-, DI + located above points to the growing bearish trend. This condition can be written as follows: ADXR> DIPLUS AND DIMINUS> DIPLUS AND ADXR> ADXR.1

If ADXR was below the DI + and below the DI-, but began to rise, it indicates the emergence of a new market trend. This condition can be written as follows:
ADXR ADXR.1

The use of graphics programs

This indicator is presented in most graphics programs. To construct a set the following parameters:

. DX Period - the period used for calculating the index
. ADXR Interval - The interval used for averaging the current value with the value of ADX ADX n periods ago, to get ADXR
. Smoothing Period - the period of smoothing that is used to apply smoothing Vélez Vayldera to the direction of movement (DX) to obtain values ADX
. Line Color - color of line on the graph ADXR However, some programs during the index period and smoothing ADXR period can be adjusted directly from the keyboard, without opening a special window. To do this, first select an indicator, then use the arrow "up" and "down" to change the index by one. To control the Period of smoothing the same procedure done with pressing "ctrl". To adjust the period ADXR arrow "up" and "down" are pressed, while pressing "shift".



Forex Magazine
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