ADXVMA Trend States and Smoothing Options

Summary

The document describes an ADXVMA-based trend indicator that represents market direction through calculated trend values. It says the measure resembles ADX-based values but differs enough to produce different readings, so it should not be assumed to match a conventional ADX trend indicator.

The indicator can be smoothed with simple, exponential, smoothed, linear-weighted, or ADXVMA averaging. According to the description, changing the smoothing type or period alters the visual presentation but does not change the underlying trend state, which is determined solely by the ADXVMA calculation. The text provides no formula, market examples, comparison data, or performance tests, so it explains the indicator’s intended behavior without establishing its predictive value.

Key ideas

• The indicator uses ADXVMA calculations to represent a trend state.\nIts values are described as related to, but distinct from, conventional ADX readings.\nFive averaging approaches are offered to smooth the displayed values.\nSmoothing is said to change the visual trace without changing the underlying trend state.\nThe document provides no empirical test of the indicator’s forecasting usefulness.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.