Average Directional Index Rating (ADXR)

ADXR is a smoothed version of ADX (Average Directional Index), calculated as the average of the current ADX and the ADX from n periods ago: ADXR = (ADX + ADXn) / 2 where n equals the time_period (default 14). This creates a slower, less volatile trend strength measure than raw ADX. ADXR ranges from 0 to 100, with higher values indicating stronger trends (regardless of direction). ADXR smoothing reduces ADX noise while maintaining trend strength measurement.

Cryptocurrency traders use ADXR for smoother trend strength readings with fewer false signals than raw ADX. Values above 25 suggest strong trends worth trading, while below 20 indicates weak/absent trends better suited for range strategies. ADXR generates fewer whipsaws during choppy markets because its dual-period averaging filters short-term fluctuations. It works particularly well for identifying sustained trends in volatile crypto markets. Combine with +DI/-DI for complete directional analysis, with moving averages for trend confirmation, or with volatility indicators (ATR) for adaptive position sizing. Popular among swing and position traders seeking reliable trend filters.