What is the ADXR?

The ADXR is a different form of ADX. It allows us to calculate the same thing. Except it does it at a different rate.It allows us to slow down the ADX so we do not get skewed one way or another by a big move. To do this we take the current ADX level add the ADX level X number of days ago and divide it by two. This allows us to get an ADX indicator that is steady.

Below is an example of how the indicator looks on a chart.

Like the ADX the ADXR does not predict the direction a stock is likely to go but how strong the trend is. If this indicator is high that means the trend is strong. If it is low that means the trend is weak.

It is important to remember that a high level does not necessarily mean a strong stock. In this example the stock is trending down but the ADXR is high. This shows that the down trending is strong, so you should not be a buyer during this time.

Other Oscillators

There are plenty of oscillators out there which give you great buy and sell signals when trading a stock. Most professional traders will use combine 2 or 3 oscillators that they feel comfortable with when making a trading decision.

Combining too many oscillators together may work against you since you will rarely get all indicators to add up at one time. There is information about different indicators throughout this site. Here are a few.

Detrended Price Oscillator - This uses the moving average in order to give out short term overbought and oversold levels.

Balance of Market Power – This looks to see who is currently in control of a stock, the bulls or the bears.

Bollinger Bands - This uses standard deviation to create a support and resistance level on the stock.