ADXR

Average Directional Movement Index Rating

Get our charts to analyze ADXR in real time.

- Technical Analysis, Indicators

Technical Analysis

Technical Analysis, Studies, Indicators:

Average Directional Movement Index Rating(ADXR)

Back to the List of Studies

Description: Basics of technical analysis, introduction and description of technical indicators, chart example.

ADXR stands for Average Directional Movement Index Rating. ADXR is a component of the Directional Movement System developed by Welles Wilder. This system attempts to measure the strength of a price movement in positive and negative directions, as well as the overall strength of the trend. The Average Directional Movement Rating quantifies the change of momentum in the ADX (Average Directional Index). It is calculated by adding two values of ADX (the current value and a value n periods back) and then dividing by two:

ADXR = (ADX + ADX N periods ago) / 2

There are several ways to use ADXR:

The ADXR can be used in the same way as the ADX is used in the Directional Movement system. The technical analysis interpretation is the same as the ADX - the higher the value, the stronger is the trend. It results in more conservative trading signals. The ADXR can be used to determine whether a price movement is sufficiently directional to be worth trading. Welles Wilder's rule is to use a trend following trading system when ADXR is above 25, but not when ADXR drops below 20.
ADXR is a lagging indicator that behaves like an Averaged ADX. In addition, the ADXR will generate signals after the ADX. In some cases the ADXR is used as a signal line applied to ADX. There is a buy signal when ADX rises above ADXR, and a sell signal when ADX falls below ADXR.

Chart 1: S&P 500 - ADXR (Average Directional Movement Index Rating)

SP 500 chart - Technical Analysis - ADXR, Average Directional Movement Index rating

V. K.

Copyright 2004 - 2012 Highlight Investments Group. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Our pages are constantly scanned. If we see that any of our content is published on other website, our first action will be to report this site to Google and Yahoo as a spam website.

Start using our Professional Charts
and Make Money with our System!

Sign up for a Free Trial Now!
(credit card not required)

Technical studies classified by the types of technical analysis

MV Studies - list of technical indicators (studies) developed MarketVolume® team. We are the first who introduced this indicators to the world and at the current moment we are the only company that provides these indicators and we consider ourselves these indicator developers.

Price Studies - information about calculation and using RSI, Stochastics, MACD, and other price based technical indicators (studies) which are available with our charts.

Volume Studies - a list of volume based technical indicators (studies) which are available with our charts.

Advance/Decline Studies - list of advance decline based technical indicators (studies) which are available with our charts

Volatility Studies - a list of technical indicators (studies) which are used to measure market and security volatility and are available with our charts.