ADX and DMI on DataSeries
Author: WarrenT
Creation Date: 5/18/2010 7:54 AM
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WarrenT

#1
Hi - the current function for ADX appears to only take the bars argument. Any exmaples on how to use this to plot the ADX on a series (in my case relative close where this is stock close/benchmark clsoe) would be very helpful. I would assume the same logic applies for +/-DMI? Many thanks, W
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Eugene

#2
It's not the current function, it's per Wilder's design.

ADX is a smoothed DX (directional movement) which, in its turn, is essentially a normalized ratio of DI+ to DI-. And the DI+ and DI- formulas are heavily using the low and the high prices - that's why passing a Bars object is a requirement.

There are other trend strength indicators you may use to substitute the ADX on data series. Off the top of my head, here are two from Community.Indicators:

Trend Intensity Index (TII)
TSI (Trend Strength Index)