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David
> The ADX does not use Exponential MAs in its calculation.
> Your point is taken though.
Yes it does use Exponential MS's in its calculation. That's my whole point.
The only thing really different from a standard moving average is the amount
of new data added and the amount of old data discarded with each new bar. If
you read the write-up in the MS User Manual (page 526 in my EOD 7.01
version) it states
"similar to the "exponential" method in that it retains a decreasingly
smaller percentage of all historical data in the series".
When I finally finish my reply to Gary I will have explained the how and why
a little more fully.
You can easily prove the point by running a simple exploration just
returning a Wilders smoothing value, and keep adding more periods to the
exploration up to the number of bars you normally display on a chart. As you
add more periods the result will become more accurate when referenced to the
chart value.
Roy
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