Average Directional Index

Category: trend, volatility

Measures the strength of a trend regardless of direction by calculating the smoothed moving average of the difference between positive and negative directional indicators.

Formula

TR = RMA(TrueRange, len)\n+DM = (up > down and up > 0) ? up : 0\n-DM = (down > up and down > 0) ? down : 0\n+DI = 100 * RMA(+DM, len) / TR\n-DI = 100 * RMA(-DM, len) / TR\nADX = 100 * RMA(|(+DI - -DI) / (+DI + -DI)|, adxlen)

Inputs

• ADX Smoothing (default: 14)
• DI Length (default: 14)

See signal primitives, usage in published strategies and more on WOBR StrategyVerse.