I'm looking at using the ADX to select between a Stochastic and a
moving average crossover system as appropriate for trending vs.
channeling/cycling conditions.
Can anyone shed some light on the difference between the ADX
indicator displayed in RealTick and the ADX function in MetaStock?
When I plot them on the identical price data in the two different
software packages, the results are completely different. The
RealTick ADX behaves as I would expect, with significant variations between higher values (> 30 or so) for trending conditions and lower values (< 30 or so) for channeling conditions. The RealTick ADX line also begins 14 days after the start of the data for a 14-period ADX. The MetaStock ADX is nearly a flat line, and begins 28 days after the start of the data (for a 14-period ADX). It looks like it's being smoothed a second time.
I've done some investigation but have not yet done a spreadsheet to re-creat Wilder's formulas from his "New Concepts in Technical Trading Systems". That's my next step, but I thought someone else may have already figured it out.
So far it looks to me like it's a difference in terminology - that
the ADX in RealTick is actually Wilder's DX, or the MetaStock DX is
actually Wilder's ADX. I also note that MetaStock's custom formula
library includes a custom indicator which calculates ADX and ADXR
without rounding, with the note that the built-in indicator is exactly the same as Wilder's original calculations. I wouldn't think
that the rounding difference would be large enough to account for the difference between the two software packages.
Thanks.
Gary
moving average crossover system as appropriate for trending vs.
channeling/cycling conditions.
Can anyone shed some light on the difference between the ADX
indicator displayed in RealTick and the ADX function in MetaStock?
When I plot them on the identical price data in the two different
software packages, the results are completely different. The
RealTick ADX behaves as I would expect, with significant variations between higher values (> 30 or so) for trending conditions and lower values (< 30 or so) for channeling conditions. The RealTick ADX line also begins 14 days after the start of the data for a 14-period ADX. The MetaStock ADX is nearly a flat line, and begins 28 days after the start of the data (for a 14-period ADX). It looks like it's being smoothed a second time.
I've done some investigation but have not yet done a spreadsheet to re-creat Wilder's formulas from his "New Concepts in Technical Trading Systems". That's my next step, but I thought someone else may have already figured it out.
So far it looks to me like it's a difference in terminology - that
the ADX in RealTick is actually Wilder's DX, or the MetaStock DX is
actually Wilder's ADX. I also note that MetaStock's custom formula
library includes a custom indicator which calculates ADX and ADXR
without rounding, with the note that the built-in indicator is exactly the same as Wilder's original calculations. I wouldn't think
that the rounding difference would be large enough to account for the difference between the two software packages.
Thanks.
Gary