[Metastockusers] MetaStock ADX vs. RealTick ADX

["Gary" <gary.keeney@xxxxxxxxxxx>]

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 


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