Customized Moving Average Directional Movement

v10.3
Customized Moving Average Directional Movement

When Welles Wilder created his ADX indicator (and the Directional Movement idea) he was doing all the math by hand. You can still see the worksheets he used in his book. His way to make the Average of some numbers was just to take yesterday’s value, divide it by the period, multiply this number times period minus 1 and add today’s value divided the period. Over time this became the Wilder’s average. Since he used normally a 14-period average he was making only 4 operations instead of 15 …. and that was a lot of time saved!!

Needless to say that his average was not the most precise (I could write a lot more on averages) but it was the quickest to calculate and good enough to make his indicators to work fine.

Today with the help of computers we can get much more. I wrote the directional movement code with the possibility to change the type of moving average used. I personally use a weighted moving average and the performance of Wilder’s indicator is, in my opinion and experience, much better.

Blue skies!!

Share this

Risk disclosure:

No information on this site is investment advice or a solicitation to buy or sell any financial instrument. Past performance is not indicative of future results. Trading may expose you to risk of loss greater than your deposits and is only suitable for experienced investors who have sufficient financial means to bear such risk.

ProRealTime ITF files and other attachments : How to import ITF files into ProRealTime platform?

PRC is also on YouTube, subscribe to our channel for exclusive content and tutorials

  1. Vinks_o_7 • 10/31/2017 #

    Hi Gabri
    Is there a small mistake in the TR computation: this is “mioTR=max(abs(high-close[1]),max(abs(low-close[1]),range))” in lieu of “mioTR=max(abs(high-close),max(abs(low-close),range))” ?

  2. gabri • 10/31/2017 #

    it’s seems correct to me https://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:average_true_range_atr

  3. Vinks_o_7 • 10/31/2017 #

    I looked at your page: It’s written:
    Method 2: Current High less the previous Close (absolute value)
    Method 3: Current Low less the previous Close (absolute value)
    This is why I think there’s a small mistake in the TR computation: this is “mioTR=max(abs(high-close[1]),max(abs(low-close[1]),range))” in lieu of “mioTR=max(abs(high-close),max(abs(low-close),range))”

  4. gabri • 10/31/2017 #

    You are right, I will change it, Thank you!!

  5. Vinks_o_7 • 10/31/2017 #

    Nope…I THANK YOU FOR ALL THE GOOD WORK YOU DID 😉

avatar
Register or

Likes

avatar avatar avatar avatar avatar avatar avatar avatar avatar
Related users ' posts
Regisnew très bel indicateur merci
Bernard13 (Je réécris mon commentaire -français- en français car certains mots ne correspondaient pas ...
Iván 1000 indicateurs !!! brutaux
Iván
10 months ago
winnie37 Hi Ivan, if i want to use it, and call the oscillator value (in grey, green or red), how to...
Iván The oscillator is smoothtype. In inputs there is de lag to configure the output
Nicolas
2 years ago
f1_maik Ein sehr schöner Indikator, vielen Dank. Wenn ich den Indikator importiere und starte hat d...
Nicolas das ist in der Tat normal, Sie müssen die Auf- und Abwärtsfarbe direkt im Parameterfenster d...
FXtonio Bonjour Nicolas, merci pour cette merveille, je l'utilise en compl2ment du "magical buy sell...
Fabian Hi Thomas, thanks for your explanations. Which indicator do you use in the screenshot ...
Thomas Thats On Balance Volume and Bollinger or SMA or what you want. It shows me the volume flow. ...
bertrandpinoy @MAKSIDE I would be grateful if you send me your version. have a nice day
woktrade Superbe !
Vonasi An updated version with a bug fix can be found here: https://www.prorealcode.com/topic/dis...
snucke hey Vonasi is it possible you can help me get this indicator to show how much a market mo...
Vinks_o_7 Vonasi you're a beast !!! ;-)))
pableitor Amazing indicator , you are pushing PRT to the limit! But looking at the scatter its not c...
JJ Tec Hola. Me gustaría contactar contigo para ver la estrategia..
nilsla1981 Has someone already tested in real ?
Lucas0000 Hola. estoy buscando un programador en proorder, para hacer un programa basado en el Q-trend...
Vinks_o_7
6 years ago
IV Mcm I've always wondered how to make the ADX faster, thank you!
Vinks_o_7 You welcome !
Vinks_o_7 Another variation that may be more accurate : we calculate the average of normalized DI's in...
Vinks_o_7 Great, thanks a lot Nicolas !
Teddy Coronak Top Nicolas ! Merci
Andyswede Thank's! Great indicator:)
bharatjai Script 'Adaptive ATR' has been saved line 24: no viable alternative at input 'lr' Gettin...
Nicolas download the itf file and import it into your platform.
Francis3332 Bonjour à tous, J'aime beaucoup cet indicateur et j'aimerais pouvoir l'utiliser sur la dern...
Domenec Claro Juanjo de todas maneras en deinversoratrader.com tienes estsos osciladores evolucionad...
Dron Hola Domenec, en la descripción hablas del indicador velas de colores, no lo encuentro en la...
Domenec Hola Dron mira en el blog deinversoratrader.com en formacion indicadores ahi hay varios grat...
AGTrader Interesante, muy visual Doc. Felicidades!!!
Andraxx simplemente impresionante Dom...te sigo en youtube. Me ha gustado tu canal. Gracias por comp...
MauroPro It is possible to apply this indicator ON the chart , because when I try to apply the formul...
Nicolas Yes, just apply it on the price chart by using the wrench on the left upper side of your pri...
MauroPro Hi Nicolas, thanks for the reply, I managed to apply the indicator on the chart.

Top