Skip to main content

ADXR

Type: adxr • Category: indicators

Description​

Average Directional Movement Index Rating

Parameters​

NameTypeDescriptionRequiredDefault
dataExpstringprices datano
highstringselect the column with highest pricesno
lowstringselect the column with lowest pricesno
closestringselect the column with closing pricesno
timeperiodnumberNumber of periods to use for ADXR calculationno14

Help​

ADXR

Average Directional Movement Index Rating​

The Average Directional Movement Index Rating (ADXR) is a technical indicator used in financial analysis to measure the strength of a trend. It is a variation of the Average Directional Index (ADX) and is used to gauge the effectiveness of a trading strategy.

Description​

The ADXR indicator is used to evaluate the strength of a trend by plotting the average directional index over a specified time period. The ADXR is calculated based on the positive and negative directional indicators (+DI and -DI) and provides a smoothed-out version of the ADX.

The ADXR indicator can be used to:

  • Determine the strength of a trend
  • Identify potential trading opportunities
  • Confirm trading decisions

How it Works​

The ADXR indicator is calculated using the following parameters:

  • dataExp: prices data
  • high: select the column with highest prices
  • low: select the column with lowest prices
  • close: select the column with closing prices
  • timeperiod: Number of periods to use for ADXR calculation

The ADXR indicator is calculated as follows:

  1. Calculate the +DI and -DI indicators
  2. Calculate the ADX indicator
  3. Calculate the ADXR indicator by taking the average of the ADX over a specified time period

Interpretation of Results​

The ADXR indicator can be interpreted as follows:

  • A high ADXR value (> 25) indicates a strong trend
  • A low ADXR value (< 20) indicates a weak trend
  • A rising ADXR value indicates an increasing trend strength
  • A falling ADXR value indicates a decreasing trend strength

Usage​

To use the ADXR indicator, simply pass in the required parameters:

ADXR(dataExp, high, low, close, timeperiod)

Visualizing the ADXR Indicator​

The ADXR indicator can be visualized using a chart. Here is an example of how to use the ADXR indicator:

How to use ADXR

For a shorter overview:

Short overview of ADXR

Additional Information​

The ADXR indicator was developed by J. Welles Wilder and is widely used in technical analysis. It is often used in combination with other indicators to confirm trading decisions.

Example Use Cases​

  • Use the ADXR indicator to confirm trading decisions
  • Use the ADXR indicator to identify potential trading opportunities
  • Use the ADXR indicator to evaluate the strength of a trend

By following these guidelines and using the ADXR indicator in your trading strategy, you can gain a better understanding of market trends and make more informed trading decisions.