ADX indicator and is used as a rating of the Directional Movement while smoothing out ADX values. If to compare ADXR to ADX, the smoother ADXR doesn’t depend much on fast short-term adxr forex factory turns and reversals, which allows to minimize trading risks when relying on ADXR in the long term.
When ADXR is above 25 – use a trend-following system. When ADXR drops below 20 – avoid using trend-following systems, instead use oscillator based systems for calm, non-trending or range-bound markets. D- indicates a strengthening bullish market. A cross of ADXR and ADX lines can also be used for evaluating changes in the market. The smoothing nature of ADXR makes it less responsive than ADX.
You are doing a great Job. I am do not reate this indicator. My question is which is lagging ADXR or ADX? ADX staying below 20 level — there is no trend or the trend is weak.
ADX moving above 20 level — trend is strong. ADX passing 40 level — trend is extreme. ADX value rising — trend is going stronger, falling — trend is weakening. DI stays on top of -DI — uptrend is in place. DI — downtrend is in place. Two DI cross — trend is changing.