Hello,
can I kindly ask you to provide the formula you're using for the ADX indicator?
I can see a clear discrepancy in values calculated by Wealth-Lab compared to 3 other sources: my own implementation, StockCharts.com, Investing.com. The difference is not that big, but it's not negligible. The value is the same for the rest 3 sources I mentioned.
E.g. for GLD for 23.09.24:
ADX(5)
Wealth-Lab = 53.20
StockCharts = 53.53
ADX(3)
Wealth-Lab = 69.47
StockCharts = 70.16
You can use the link to easily check the values generated by StockCharts: https://schrts.co/geVSrPmx
Thank you
can I kindly ask you to provide the formula you're using for the ADX indicator?
I can see a clear discrepancy in values calculated by Wealth-Lab compared to 3 other sources: my own implementation, StockCharts.com, Investing.com. The difference is not that big, but it's not negligible. The value is the same for the rest 3 sources I mentioned.
E.g. for GLD for 23.09.24:
ADX(5)
Wealth-Lab = 53.20
StockCharts = 53.53
ADX(3)
Wealth-Lab = 69.47
StockCharts = 70.16
You can use the link to easily check the values generated by StockCharts: https://schrts.co/geVSrPmx
Thank you
Rename
The difference in your and 3rd party implementations most likely comes from not taking into account Wilder's smoothing which WL adheres to.
And like EMA and many other, ADX is a "IIR" indicator, which depends on the amount of seed data. The current value will be different by some precision for charts with 100 bars and 200 bars, for example. In fact, it can be greatly different.
Example:
SPY, 100 bars, ADX(20) current value is 19.17
SPY, 150bars, ADX(20) current value is 14.18
SPY, 500 bars, ADX(20) current value is 14.20
This is why when using indicators like this, we recommend using a StartIndex at least 3x the period.
See Help (F1) > Indicators > Stability of Indicators
Example:
SPY, 100 bars, ADX(20) current value is 19.17
SPY, 150bars, ADX(20) current value is 14.18
SPY, 500 bars, ADX(20) current value is 14.20
This is why when using indicators like this, we recommend using a StartIndex at least 3x the period.
See Help (F1) > Indicators > Stability of Indicators
Yes, thank you Colleagues!
I know about the 3x period rule of thumb. Here the difference was caused by the Wilder's MA as Eugene mentioned.
I know about the 3x period rule of thumb. Here the difference was caused by the Wilder's MA as Eugene mentioned.
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