indicator is constructed with a strict correspondence Welles Wilder in his book "New Concepts in Technical trading systems "
trading - ADX Wilder - Rules And Signal
indicator ADX Wilder includes:
- ADX line
- a line + DI
- a line -DI
trading the rules are the same as with the Average Directional Movement Index indicator
Formula calculation - ADX Wilder
High (i) - maximum price price of the current bar
Low (i) - minimum price of price of the current bar
High (i-1) - maximum price price of the previous bar
Low (i- 1) - minimum price price of the previous bar
Close (i-1) - closing price of the previous bar
Max (a, b, c) - maximum values: a, b, c
ABS (X) - absolute value of X
If High (i) - High (i-1)> 0
dm_plus (i) = High [(i) - High (i-1)
or dm_plus (i) = 0.
If Low (i-1) - Low ( i)> 0
dm_minus (i) = Low (i-1) - Low (i)
or dm_minus (i) = 0.
r (i) = Max (ABS (High (i) - Low (i)), ABS ( High (i) - Close (i-1)), ABS (Low (i) - Close (i-1)))
SMMA (X, N, i) - moving average smoothed x series of the current bar
Perod_ADX - number bars used
ATR (i) = SMMA (tr, Period_ADX i)
Plus_D (i) = SMMA (dm_plus, Period_ADX, i) / ATR (i) * 100
Minus_D (i) = SMMA (dm_minus, Period_ADX, i) / ATR (i) * 100
Analysis Trading
Trade Forex - Example
Currency Pair: EUR / USD
Time frame: H1 - 1 Hour
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