TradingCharts

Directional Movement Rating

Readings above 25 indicate a meaningful trend worth trading with trend-following tools; below 20 suggests a range where mean-reversion tactics work better.

What it does

Directional Movement Rating (ADXR) is the average of the current ADX value and the ADX value from a set number of bars ago, typically (ADX today + ADX n bars ago) / 2 with n equal to the ADX period. It smooths ADX to give a steadier reading of trend strength. Like ADX, it measures how strongly price is trending, not the direction.

Typeoscillatorseparate pane

How to add it

Click Indicators (ƒx) in the header.

Search “Directional Movement Rating” and click the result.

Hover its legend row and click the gear to open settings.

How traders use it

  • Readings above 25 indicate a meaningful trend worth trading with trend-following tools; below 20 suggests a range where mean-reversion tactics work better.
  • ADXR rising while +DI is above -DI supports staying long; rising with -DI on top supports shorts.
  • Because it is smoother than ADX, a turn down in ADXR from a high level is a more reliable signal that the trend is maturing.
  • Compare ADXR across markets or symbols to pick the most strongly trending instrument to trade.
  • Use it as a filter, not a trigger: take entries from price action or DI crosses only when ADXR agrees a trend exists.

Inputs

Input Type Default Range / Options
Period number 14 1–50
ADX Smoothing number 14 1–50

Plots & styling

Plot Style Default color
Rating line #8bc34a
ADX line #ff9800
+DI line #26a69a
-DI line #ef5350

Every plot's color, line width and visibility can be changed on the Style tab. Precision (default 2 decimals), price-scale labels and status-line values are configurable at the bottom of the Style tab.

Tips

  • Double-click the plot to open settings directly, skipping the legend hover.
  • The pane keeps its height in saved layouts, so size it once and it survives reloads.
  • Resize the pane by dragging its divider; collapse it from the legend row when you need the space back.

Watch out for

  • The extra averaging doubles down on ADX's lag, so it confirms trends late and flags their end late.
  • It carries no directional information on its own; a high ADXR is equally consistent with a strong rally or a strong decline.