Smoothed ADX: Two-Stage Smoothing of Directional Movement

Summary

This indicator description explains a smoothed form of the Average Directional Movement Index (ADX), a measure associated with trend strength. It exposes five adjustable settings: the ADX period, primary and secondary smoothing factors, and thresholds for strong and weak trends.

The calculation first forms intermediate smoothed values for positive and negative directional movement and ADX, then applies secondary smoothing to each series. The document supplies recurrence equations but no trading rules, parameter guidance, worked example, or evidence that smoothing improves signal quality. Its thresholds are configurable, so interpreting the output depends on the chosen settings and instrument. It is best read as a technical-indicator definition rather than a tested strategy.

Key ideas

• The indicator applies primary and secondary smoothing to directional movement and ADX values.
• Its five parameters include the calculation period, two smoothing factors, and strong- and weak-trend levels.
• The equations recursively combine current inputs with prior smoothed values.
• The description gives no trading rules, recommended settings, or performance evidence.

Tags

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