Average Directional Movement Index Rating (ADXR)
Download indicator: ADXR.mq4
Average Directional Movement Index Rating (ADXR) is a smoothed version of 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 market turns and reversals, which allows to minimize trading risks when relying on ADXR in the long term.
How to trade with ADXR
When ADXR is above 25 - use a trend-following system.
A rising ADXR, with DI+ above the 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.
ADXR is used for calculation of the Commodity Selection Index (CSI).