Average Directional Movement Index Technical Indicator (ADX) helps to determine if there is a price trend. It was developed and described in detail by Welles Wilder in his book "New concepts in technical trading systems". However, the main purpose of the ADX is to determine whether a stock, future, or currency pair is trending or is in a trading range. Determining which mode a … [Read more...]
DMI, Directional Momentum Index
Directional Momentum Index ,DMI.is an indicator used in technical analysis to determine if a financial instrument, such as a stock, is trending in particular direction. It is broken into the positive directional indicator (+DI), negative directional indicator (-DI) and Average Directional Index (ADX). The value of the index can be zero. The higher the value of the DMI, the … [Read more...]
Average Directional Movement Index Rating (ADXR) Explained
The Average Directional Movement Index Rating (ADXR) indicator is an attempt to quantify the momentum change of the ADX indicator. It was developed by J. Welles Wilder and described in his book "New Concepts In Technical Trading Systems", written in 1978. The ADXR is constructed adding the current ADX value and an ADX value n-Periods ago and then dividing that sum by two. This … [Read more...]