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Gary,
One way out would be to compute the ADX in a
spreadhseet and verify both for accuracy. Though I
havent done that I have compared the ADX computation
in MS with another program I use and it varied
significantly. To further verify I downloaded
Amibroker and cross checked with that. Once again the
MS value was different while the other two tallied. It
is obvious that as usual the MS formula for ADX is
incorrect.
Rakesh
--- Gary
gary.keeney@xxxxxxxxxxx> wrote:
> 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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