A Composite Trend Indicator Built from Multiple Moving Averages

Summary

The indicator combines several moving averages by comparing the fastest selected average with the others and using the resulting differences to represent trend. The user can choose periods and arrange them in any order; the indicator handles their ordering. It supports simple, exponential, smoothed, and linear weighted moving averages. The description says as many as 256 averages may be combined in theory, though the practical limit depends on parameter input length and the periods entered.

Signals are based on either a color change associated with the indicator’s slope or a crossing of the zero line. The description presents these as possible signal types, but gives no precise trading rules for entries, exits, or position sizing. It includes no backtest, market examples, or performance evidence, so it does not establish whether the indicator is predictive or robust. The page also contains unrelated site notices and promotional navigation, which do not add to the method.

Key ideas

• The indicator compares a selected set of moving averages against the fastest average to form a trend measure.
• Users can select periods and choose among four standard moving average types.
• The number of usable periods is constrained in practice by parameter input length.
• Slope-related color changes and zero-line crossings are presented as potential signals.
• The description provides no backtest or evidence of trading performance.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.