Definitions
In plain terms
It is the average-form equivalent of Wilder alpha one over n after the initial ADX seed.
Technical
The recurrence begins only after seeding and must preserve valid DX order, missing-data policy, state, precision, and reset rules.
Scope
It is not a rolling arithmetic mean of the latest n DX values.
Formula
ADX_t = ((n - 1)*ADX_(t-1) + DX_t) / nADX_t=\frac{(n-1)ADX_{t-1}+DX_t}{n}| Symbol | Meaning | Unit |
|---|---|---|
ADX_(t-1) | prior ADX state | percent |
DX_t | current directional index | percent |
n | ADX period | observations |
Output unit: percent
Examples
- A governed lesson calculates or identifies ADX Recursive Update only after its parameters, state, timing, and edge cases are declared.
Common misconceptions
- It is not a rolling arithmetic mean of the latest n DX values.
Concept relationships
Prerequisites
Where this concept is used
Evidence and governance
- TA-Lib Average Directional Index Implementation TA-Lib · first party technical publication
Supports: preferred label, short definition, technical definition, formula
Limits: Unstable periods and platform-specific first-ready indexes must be reconciled before claiming exact parity.
- Reviewed by
- fintech-builder-batch-007
- Last reviewed
- 2026-07-27
- Next review
- 2027-07-27
- Record status
- evidence reviewed
This record is evidence-reviewed and readable, but not yet promoted to published — it is served noindex,follow and excluded from the sitemap.