Combining Smoothed and Fast ADX to Track Trend Strength

Summary

The document describes a dual version of the Average Directional Index (ADX). It computes directional movement and average true range, derives positive and negative directional indicators, then presents a smoothed ADX alongside a faster unsmoothed reading. The proposed use is to compare their direction: when both measures move together, the trader may treat that agreement as confirmation that trend strength is changing. The faster series is intended to respond sooner, while the smoothed series provides a less reactive reference. The author also suggests watching overbought and oversold areas on the fast series.

The post provides indicator formulas and a stated default period and smoothing setting, but no chart, market example, parameter study, or performance results. It does not define objective thresholds for the fast series or specify entry, exit, or risk rules. The code’s “fast” measure is the unsmoothed directional-strength ratio, so its behavior and scale should be checked on the intended platform before it is used as a cycle oscillator. The proposed convergence idea is therefore an indicator concept, not a validated trading system.

Key ideas

• The indicator plots a smoothed ADX and an unsmoothed directional-strength measure together.
• Agreement in their direction is proposed as confirmation of changing trend strength.
• The faster reading may react earlier, but the post provides no performance evidence for that benefit.
• Overbought and oversold levels on the fast series are suggested without specified thresholds.

Tags

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