Research method
Average Directional Index
Average Directional Index is a canonical archive-taxonomy method; this registry entry defines its inputs, output and use boundary.
- Output
- Conditional forecast or research filter
- Input
- Ordered price, volume or breadth observations
- Horizon
- A defined sampling interval and lookback
- Best use
- Compare an explicit quantitative baseline with an out-of-sample result.
- Input: Ordered price, volume or breadth observations.
- Output: forecast.
- Use boundary: Compare an explicit quantitative baseline with an out-of-sample result.
The graph7
How the method is built, and where it has been read
Depends on
Often reviewed together
Rule-based entry4 readings
Often reviewed together
ATR position sizing4 readings
Often reviewed together
Moving average5 readings
Often reviewed together
MACD5 readings
Often reviewed together
Relative Strength Index6 readings
Often reviewed together
Stochastic oscillator7 readings
Often reviewed together
Trend filter9 readings
Read in the archive24 of 79 readings
1986Cycle-aligned directional trend indicator1987Constructing the commodity channel, average directional, and relative strength indexes on a shared cycle scale1987What crossover and directional entry rules actually compare1988A directional-line cross needs a trend filter, an extreme-point rule, and a dollar stop1988Constructing unsigned true range for directional models1988Constructing true range by offset addressing1988Constructing directional movement from bar range1988Average directional index construction: recursive smoothing and lookback offset1988Staged Average Directional Index construction with Relative Strength Index confirmation and stop alerts1988Average Directional Index construction with frozen true range and directional rules1991Constructing the average directional index from range expansion and true range1991Constructing five-session forecasts from stochastic, ADX, and MACD inputs1993Confirming n-bar breakouts with ADX and DX filters1993Constructing the average directional index from directional movement and true range1994Label the tape before you read stochastic or Williams %R1994Building average directional index, the stochastic pair, and Williams percent R from highs, lows, and closes1994Constructing a Bollinger band-width trend filter1994A pre-trade checklist that can refuse a long three ways1995Two-gate breakout confirmation with adaptive averages1997An ADX threshold and a moving average as a trend filter1997Confirm structure and conditions before naming a Triangle pattern1998Regime filters for mutated indicators1999Building the average directional index from range extension and true range1999A trend filter that switches tactics and scales ATR targets
This registry entry describes a research method. It is not investment advice and does not make a performance claim.