Jimmy wrote: Fri Feb 25, 2022 10:05 pm
ADXvma
It is strange! I really like it as a filter on certain subwindow indicators because it removes fluctuations.
Many analysts argue (especially in Futures) that ADXvma is just an "Exponential Moving Average" or a "Modified
VIDYA (VMA)" because there is no direct link to the ADX formula. I disagree, as the VIDYA is considered "the nephew of the
ADX" and there's also a bit more to it.
The ADXvma has the SMA in
Chande's CMO replaced with an EMA, it then uses a few more layers of EMA smoothing before the "Volatility Index" is calculated.
A side effect is, those additional layers slow down the ADXvma when you compare it to the actual
VIDYA (VMA).
However, the good thing about it is once there's consolidation detected, the
ADXvma stays flat for longer. When it eventually signals to the upside or downside, the entries are much stronger and more accurate than any traditional EMA or VIDYA (VMA).
This is why many indicators really do "look" good with the ADXvma filter applied to them.
Here are a few indicators that you may look at that have been referenced above:
Seeing that ADXvma has lagging properties, one can only imagine if the EMA smoothing of ADXvma was replaced with the much more superior
Jurik smoothing instead!
The official description of the ADXvma by Linnsoft: