Average Directional Movement Index Rating (ADXR) |
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ADXR is derived from DMI/ADX(Average Directional Movement Index). S is just smoothing a certain period of DMI values by adding a moving average.
S can be considered as a smoother DMI so part of noise signals from original DMI is filtered. As the Same with DMI, 25 is the rule of thumb to be thought as trend marketing is building. S value going above 25 means the market is forming a trend, either down trend or up trend.
Another way to use it is looking for cross of S and original DMI. In the case that DMI line cross up S line and both of indicators are approaching 25 level, we can say a trend is underway.
Parameters
| PARAMETER | DESCRIPTION |
| DMI period | period to specify the DMI period |
| ADXR interval | n period of moving average to smooth DMI line to calculate ADXR value |
| Smoothing period | n period of average to calculate the DMI value. Remember that DMI itself uses smoothing technique once already. |
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