Aj's DikFat Adjusted ADXR

Aj's DikFat Adjusted ADXR

This indicator is designed to plot the Average Directional Index (ADX) and Average Directional Movement Rating (ADXR) on the chart. The ADX and ADXR are both used to measure the strength of a trend in the market. The script allows you to customize several parameters, including the ADX Length and the Moving Average Method used for smoothing the directional movement indicators.

Key Features:

- ADX Length: Defines the number of periods over which the ADX is calculated. This value can be adjusted by the user to suit different trading styles and timeframes.
- Moving Average Method: Choose between several smoothing methods, including Simple Moving Average (SMA), Exponential Moving Average (EMA), Wilder's Moving Average, Weighted Moving Average (WMA), Hull Moving Average (HMA), or a Super Smooth Moving Average.
- Directional Indicators: The script calculates the +DI and -DI, which represent the positive and negative directional indicators respectively. These are then used to calculate the ADX.
- ADXR: The ADXR is calculated as the average of the current ADX value and the ADX value from 14 periods ago, providing a more smoothed representation of the trend strength.

How Traders Use ADX and ADXR:

- ADX: A rising ADX indicates an increasing trend strength, while a falling ADX suggests a weakening trend. A value above 25 is often considered an indication of a strong trend.
- ADXR: This indicator smooths the ADX over time, helping traders identify persistent trends. The ADXR can help filter out noise and provide a clearer picture of the trend's health.

Please note that this script and its indicators are designed to be used as tools for analysis, not as guarantees of market outcomes. Adjustments to the moving average method or ADX length can change the behavior of the indicators based on market conditions.