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2000issue C061-6

Evaluating ADX, RSI, and moving averages in a multi-stock warehouse

A data-warehouse-evaluation scores Average Directional Index, Relative Strength Index, and moving-average conditions as comparable forecasts. Each stock and analysis-reference-date pair becomes one record, later outcomes sit after that date, and each rule is judged against a random-entry-baseline.

  • Treat each stock and analysis-reference-date pair as one warehouse record so Average Directional Index, Relative Strength Index, and moving-average conditions can be scored against later outcomes on the same grid.
  • Take predictor fields at or before the analysis-reference-date and measure outcomes after it, which gives every indicator an explicit forecast horizon.
  • Compare filtered entries with a random-entry-baseline of unfiltered records rather than reviewing one chart at a time.
  • Simultaneous tests on hundreds of stocks can show indicator relationships that small single-stock samples tend to miss or overfit.
Entries in this reading3 entries
Current trackAverage Directional Index71 readingsRelative Strength Index186 readingsMoving average449 readings

A shared grid for three forecast rules

A data-warehouse-evaluation treats each stock and analysis-reference-date pair as one entry record. Average Directional Index, Relative Strength Index, and moving-average conditions can then be scored against later outcomes on the same grid.

Editorial interpretation: TradersWeek presents this design as a way to evaluate the three methods as comparable forecasts. The archive describes the historical workflow. It does not rank the indicators for present-day use.

The analysis-reference-date split

An analysis-reference-date is a midpoint on each stock chart that splits earlier predictor measurements from later outcome measurements. Predictor fields are taken at or before that date, while outcome fields measure price change after it. The split creates an explicit forecast horizon for every indicator.

What the warehouse stores

The compiled store holds 2,537,823 records and 606 variables from about 500 stocks, mainly S&P 500 names, spanning 1970 through 1998.

Each record can carry technical fields, binary conditions, fundamentals, S&P 500 market-environment fields, and 135 outcome measurements so filtered entries can be compared with randomly chosen entries.

Percentage and natural-log transformations are used so indicator and outcome comparisons are not dominated by raw price level.

Random samples and later outcomes

Visualization of random samples is used to inspect how entry conditions, including RSI-style and range measures, line up with later 20-day and 60-day outcomes across the 500-stock set.

Examined slices and a candidate rule

In the examined slices, weaker 20-day relative strength, 120-day underperformance versus the S&P 500, and higher 20-day true-range volatility coincided with stronger average 60-day outcomes and larger 60-day maximum-negative-excursion. Maximum-negative-excursion is the largest adverse percentage move after entry, used to score risk rather than only later return.

One candidate long rule combined a 20-day true-range percentage above 5 with a negative 120-day relative-strength-versus-market reading. Relative-strength-versus-market is a stock’s percentage change minus the S&P 500’s change over the same lookback, used to rank underperformance or outperformance. The rule was offered only as a research starting point rather than a finished system.

Moving averages and market environment

The same warehouse evaluation treats moving-average crossovers as unequal forecasts because their later usefulness is described as depending on the prevailing market-environment fields.

Why many stocks are tested at once

The method’s stated advantage is that simultaneous tests on hundreds of stocks can reveal Average Directional Index, Relative Strength Index, and moving-average relationships that small single-stock samples tend to miss or overfit.

Educational research material, not investment advice. Historical source context does not establish present-day performance.
18 of 56 in the Average Directional Index track
20001-8 pp.Next on Average Directional IndexStochastic pop as a filtered continuation setupA stochastic pop is price continuing higher while the stochastic stays above the 70 to 80 area instead of reversing.
All readings on this track · 56 readings
  1. 1986Cycle-aligned directional trend indicator
  2. 1987What crossover and directional entry rules actually compare
  3. 1988A directional-line cross needs a trend filter, an extreme-point rule, and a dollar stop
  4. 1988Constructing true range by offset addressing
  5. 1988Constructing directional movement from bar range
  6. 1988Average directional index construction: recursive smoothing and lookback offset
  7. 1988Staged Average Directional Index construction with Relative Strength Index confirmation and stop alerts
  8. 1988Average Directional Index construction with frozen true range and directional rules
  9. 1991Constructing the average directional index from range expansion and true range
  10. 1991Constructing five-session forecasts from stochastic, ADX, and MACD inputs
  11. 1993Constructing the average directional index from directional movement and true range
  12. 1993Confirming n-bar breakouts with ADX and DX filters
  13. 1994Constructing a Bollinger band-width trend filter
  14. 1994A pre-trade checklist that can refuse a long three ways
  15. 1997An ADX threshold and a moving average as a trend filter
  16. 1998Regime filters for mutated indicators
  17. 1999Building the average directional index from range extension and true range
  18. 2000Evaluating ADX, RSI, and moving averages in a multi-stock warehouse
  19. 2000Stochastic pop as a filtered continuation setup
  20. 2000Onset and exit from one average directional index
  21. 2002Joint ADX and MACD readout for trend strength and direction
  22. 2003Adaptive Donchian breakout with implied volatility and volume
  23. 2004The average directional index as a regime gate for the relative strength index and the stochastic oscillator
  24. 2004Constructing true-range-specified volume as a directional filter
  25. 2005Constructing a multi-filter penny stock breakout procedure
  26. 2005Construct one playbook that flips with session regime
  27. 2005Combining Bollinger Bands, the average directional index, and Fibonacci retracement on currency pairs
  28. 2006Assembling an adaptive price zone from double-smoothed averages
  29. 2006An ADX strength gate for MACD and the stochastic oscillator
  30. 2007Directional movement as a filter plus trigger
  31. 2007Constructing a veto-first trend permission stack
  32. 2007ADX gates for trend end, range, and reversal
  33. 2008Constructing a nine-cell directional-ratio grid
  34. 2008Average directional index and directional trend indicator lookbacks as trend-filter parameters
  35. 2008A holding-matched market lens from averages and directional-line crosses
  36. 2008A nine-cell directional scoreboard for multi-horizon entries
  37. 2010Building a Vortex Indicator from high-low distances
  38. 2010Constructing ADX, RSI, and MACD price filters
  39. 2011Constructing a volume zone oscillator with a moving-average and Average Directional Index regime filter
  40. 2011A volume zone oscillator conditioned by an Average Directional Index filter
  41. 2011Candlestick names need volume-price, ADX, and moving-average checks
  42. 2012Clustered average-directional-index traces as a trend-start filter
  43. 2012Average Directional Index cluster filters for trend-start signals
  44. 2012Confirming a trend start or turn with a triple ADX cluster
  45. 2013Constructing a late-entry stack from a signed DMI oscillator
  46. 2013A directional oscillator and its stochastic as a stacked timing filter
  47. 2013ADX cluster lookbacks are a locked specification, not a chart label
  48. 2013Combining moving averages, stochastics, and ADX in a daily scan
  49. 2015Assembling the Average Directional Index from directional movement
  50. 2016How an Average Directional Index filter and a breakout entry form one procedure
  51. 2016Score RSI and stochastic crossings only when ADX confirms the trend
  52. 2018Constructing an ADX filter for intraday breakouts
  53. 2018An ADX volatility gate for prior-day breakouts
  54. 2019Exponential deviation bands with a moving average, RSI and ADX
  55. 2020A normalized-slope trend filter from linear regression
  56. 2020Gating volatility-momentum divergences with a Trend filter
By fieldIndicators and filters682 readingsBy year200059 readings
All 71 readings tagged Average Directional Index
Also on Average Directional Index5 readings
2019Exponential deviation bands with a moving average, RSI and ADX1987Constructing the commodity channel, average directional, and relative strength indexes on a shared cycle scale1988Staged Average Directional Index construction with Relative Strength Index confirmation and stop alerts1994A pre-trade checklist that can refuse a long three ways2004The average directional index as a regime gate for the relative strength index and the stochastic oscillator