Support Board
Date/Time: Wed, 12 Feb 2025 07:15:34 +0000
Post From: ADX Study
| [2018-11-30 00:19:34] |
| SC Support Tom - Posts: 450 |
|
Hello, I wrote the documentation for both the ADX and Directional Movement Index (DMI) studies. I would make two comments on the response in Post #7. First, the DMI study does not use a value of zero for the Directional Indices when the Welles Sum is zero. Rather, it uses the prior values of the Directional Indices. This should be clear with a side-by-side comparison (see the attached image). Second, the average that is used in the ADX study is Moving Average - Welles Wilders (WWMA) - not Moving Average - Simple Skip Zeros (SZMA). It is true that WWMA defaults to SZMA when the prior value of WWMA is zero, but this almost never happens. As to the question of whether our ADX study is faithful to the original algorithm of Wilder, I do not have an answer for that yet. I have just obtained a copy of Wilder's book New Concepts in Technical Trading Systems, where he introduced ADX. I will look into it over the weekend and give you a definitive answer on that by Monday. |
 Directional_Indicators.jpg / V - Attached On 2018-11-30 00:06:27 UTC - Size: 88.05 KB - 490 views |