Indicators that study price movement with the goal of showing when an instrument is overbought or oversold.
Average Directional Movement Rating quantifies momentum change in the ADX. It is calculated by adding two values of ADX (the current value and a value n periods back), then dividing by two. This additional smoothing makes the ADXR slightly less responsive than ADX. The interpretation is the same as the ADX; the higher the value, the stronger the trend.
Average Directional Movement is a momentum indicator developed by J. Welles Wilder. The ADX attempts to measure the extent to which a market is trending. This indicator measures the strength of the trend, regardless of direction; the higher the value, the stronger the trend.
The ADX can be used in conjunction with the Direction Indicator (+DI, -DI) to produce an complete trading system. This system consist of three rules: the Crossover Rule, the Extreme Point Rule, and the Turning Point Rule.