The oscillator ADXR was introduced by Welles Wilder in 1978 in his book "New Concepts in Technical Trading Systems". It belongs to the group of the indicators of "Directional Movement of system".

However, as the best known indicator to the calculation of the trend intensity, it measures this in fact, but does not make any distinction to the trend direction. This means that a rising ADXR gives the beginning of a trend or the rise of the trend intensity, but not the direction of the trend.

The oscillator moves around an auxiliary line which ordinarily lies at the level of 20. Rises the ADXR above 20 a trend exists. Falls the ADXR below 20, the opposite is the case: The market is fed and there is no trend.

Wilder recommends to buy on markets with an ADXR from more than 25 or to sell and to hold as long as the ADXR remains more than 20. The experiences of many traders show that the ADXR can be used advantageously as a filter for trading signals in combination with other oscillators.

The ADXR is a smoothed ADX whose interpretation is a little bit easier.