Directional Movement Rating [ADXR]

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The Directional Movement Rating function determines the momentum in the Average Directional Movement, effectively adding another layer of smoothing to the Directional Movement Index. Parameters ------------------ Close         The closing price of the security for each given day. High          The high price of the security for each given day. Low           The low price of the security for each given day. DX Period  The number of bars of data to include in the Directional Movement Index, including the current value.                   For example, a period of 3 uses the changes for the current bar and the two previous bars. Smoothing Period  The number of bars to smooth the Directional Movement Index. Interval      The number of bars of data over which to sample the Average Directional Movement. Note that while this function is intended for use with these specific values, any values can be used for these parameters, including other price values and averaged prices. Function Value ------------------------ The Directional Movement Rating is the average of the current value of the Average Directional Movement and its value Interval bars ago. Usage ----------- Like the Directional Movement Index, Directional Movement Rating determines the strength of current price trends by comparing negative and positive price movements. The closer the value is to 100, the more that the price is moving primarily in one direction. The closer the value is to 0, the more that the price is remaining around a constant trading price. Source ------------ This indicator was developed by J. Welles Wilder and presented in his book "New Concepts in Technical Trading Systems".