Using a Smoothed ADXm Slope to Indicate Trend Direction

Summary

The document describes ADXm as a variation on the Average Directional Index intended to communicate market direction as well as trend strength. It distinguishes this from standard ADX, whose value indicates trend conditions but does not itself show whether the market is moving up or down. The proposed signal is the slope of ADXm: its movement over time is used to assess the trend’s direction.

This version applies Jurik smoothing to ADXm before using its slope. The stated rationale is to reduce false signals while keeping lag low because the smoothing is described as responsive to value changes. The text provides no formula, parameter settings, example chart, comparison with unsmoothed ADXm, or backtest results. It therefore explains the indicator’s intended construction and use, but does not establish that smoothing improves signal quality or that the resulting trend signal is profitable across markets or time frames.

Key ideas

• ADX indicates trend strength or conditions but does not independently show market direction.
• ADXm is presented as a variant designed to convey trend direction as well.
• The described signal uses the slope of ADXm to assess trend movement.
• Jurik smoothing is applied to reduce false signals while aiming to limit lag.
• The document supplies no parameter settings or empirical performance evidence.

Tags

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