Self-Applied ADXm for Smoothing Momentum and Trend Signals

Summary

The document proposes an experimental way to reduce the nervous behavior of ADXm during ranging markets: apply the ADXm calculation to its own output instead of using a conventional smoothing method. It notes that other smoothed and adaptive variants exist, and presents this self-application as another approach to producing a more usable indicator.

The suggested uses are to watch changes in indicator color or crosses of the zero line as possible signs of momentum or trend changes. The document offers no formula, parameter guidance, chart examples, backtest, or performance measurements. It describes the result only as apparently usable, so the idea should be treated as an unvalidated indicator experiment rather than evidence of reliable signals. It also does not specify how to define entries, exits, risk limits, or which instruments and timeframes may suit the method.

Key ideas

• The experiment smooths ADXm by applying the ADXm calculation to its own output.
• The motivation is to reduce ADXm’s erratic behavior in ranging markets.
• Color changes and zero-line crosses are suggested as possible momentum or trend-change cues.
• The document provides no parameters, backtest, or evidence of trading performance.

Tags

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