Investment Studio > Expressions > Functions > Indicator > ADXR
float array[*][2] adxr(float array[*][4] dhlc, integer days = 14, float previous_adxr = 0)
Returns a two-column array containing dates (first column) and corresponding Average Directional movement indeX Rating (ADXR) values (second column).
ADXR is a smoothed version of the trend strength indicator ADX. It's computed by taking the arithmetic average of ADX on the result date and on the result date - days. The extra smoothing reduces timeliness but also the risk of whipsaws (false signals). Other than that, interpretation and use is as for ADX. See ADX for details.
The following charts show a comparison of plain ADX(14), ADX(28) and ADXR(14) for Dell (NASD:DELL) from June 1 to December 31, 2001:
While all three indicators do a good job of signalling the start of the mid-August slide, the ADX(14) is the only one to trigger a false buy signal on September 4. All three catch the real trend reversal on September 21, but with different lags: ADX(14) is first, ADX(28) is last, turning down decisively only well into October.
ADXR(14) thus appears to be a reasonable compromise between responsiveness and robustness.