Hello. How do we change the smoothing of the ADX? Other packages like Esignal, Ameritrade StrategyDesk, Stockcharts.com, etc allow us to change 2 variables: length, and smoothing of the ADX. However, the ADX on Tradestation/Multicharts only allow us to input 1 variable, the length. How do are we able to change the smoothing?
On Esignal for example, ADX of 14 w/ no smoothing would be a setting of (14,14). An ADX of 10 would be (10,10)etc. If you want to change it to 12 days and 9 smoothing it would be (12,9). Since TS/MC doesn't give you an area to change the smoothing how do we do it?
Here are some reference links I reserached to help illustrate:
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Thanks for helping. I just tested it, but I guess it's not the correct formula. I'm not sure what the actual smoothing code is, but one way to test it, is to compare it against the standard ADX.
In theory, 14 periods, and 14 smoothing (14,14) should = the standard ADX.
If we look at the daily SPY chart, today (Aug 18), the standard ADX closed at 16.73. When I inputed 14,14 on the new code created, I got 15.96. Obviously not a big difference on this scale, but if I changed to a 5 minute chart on say 3 periods chart on a more volatile instrument, the difference would be huge.
Since I'm not a programmer I guess I don't know how to find the code for smoothing. Perhaps an Exponential MA? But I'm not sure.
The links I mentioned earlier hopefully would give an idea of what it's "supposed" to look like?
Again more assistance would be appreciated.
Last edited by whirl; August 18th, 2010 at 08:07 PM.
I just played around w/ the code you put, and wanted to give a little feedback. On the other software packages, if you put the same smoothing #, you get the standard ADX. For instance, (14,14) on Esignal you get the standard ADX(14). So basically, you increase or decrease smoothing from there.
On the code you wrote, (14,1) = the standard ADX. I don't know what the relationship codewise is, but can it be turned around where (14,14) = the standard ADX? Then I can add or subtract the smoothing from there to match studies I am working on.
ADXi = [(ADX(i-1) * (n - 1)) + DXi] / n where n = Smoothing Period DX = [ 100 * ABS( (+DI) - (-DI) ) ] / ( (+DI) + (-DI) )
This is the formula for the ADX. Notice, there are 2 variables, that can be input:
i: the length (this is something that standard TS and MC can be entered)
n: the smoothing. This is the variable that I wanted to put in that some software allows, but TS and MC's ADX's indicator formula doesn't give a place to enter.
Is there anyone that can code this that can allow both variables to be input? i and n? The standard ADX only allows i.