Momentum Indicators
Average Directional Index Rating (ADXR)
Average Directional Movement Index Rating
Deep Dive
Everything You Need to Know
Under the Hood
How It Works
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.
In Practice
How Traders Use It
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.
Highlights
ADXR at a Glance
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FAQ
Frequently Asked Questions
What is the Average Directional Index Rating (ADXR) indicator?
Average Directional Movement Index Rating
How does ADXR work?
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.
How do traders use ADXR in their strategies?
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.
What are the key points to know about ADXR?
Smoothed version of ADX using dual-period averaging Formula: (ADX + ADX_n periods ago) / 2 Range: 0-100 (trend strength, not direction) Above 25: strong trend, below 20: weak trend Default 14-period calculation Fewer whipsaws than raw ADX Best for identifying sustained trends Combine with +DI/-DI for direction Popular among swing/position traders
Can I use ADXR with Cryptorobot.ai?
Yes. Average Directional Index Rating (ADXR) is available as a built-in indicator in Cryptorobot.ai. You can add it to any automated strategy using the no-code strategy builder, backtest it against historical data, and deploy it live on supported exchanges.