help two indicator

[Ras1991]

Hi, what is the difference between these two indicators? Average Directional Movement index vs Average Directional index by welles wilder?

[jstap]

Just ask AI:

Quick Answer:
The Average Directional Index (ADX) and the Average Directional Movement Index (ADX Wilder) are essentially the same indicator conceptually, both created by J. Welles Wilder Jr. in 1978. The difference lies in calculation methods used by trading platforms: Wilder’s original formula uses his own smoothing technique (Wilder’s Moving Average), while some modern platforms implement ADX using standard moving averages (like EMA or SMA).

Core Concept

• Inventor: J. Welles Wilder Jr. introduced the Directional Movement System in his book New Concepts in Technical Trading Systems (1978).
• Components:
• +DI (Positive Directional Indicator) → measures upward movement.
• –DI (Negative Directional Indicator) → measures downward movement.
• ADX (Average Directional Index) → measures trend strength, regardless of direction.