A Moving-Average Trend Accumulator with a Adjustable Threshold

Summary

This document describes a trend indicator that tracks changes in a moving average and accumulates them until a threshold is reached. Its stated purpose is to highlight broader price movements while filtering out smaller fluctuations. The threshold controls the scale of the trends identified: lower settings produce narrower, more reactive segments, while higher settings produce broader, longer-lasting trends that overlook minor divergences.

The text presents possible use in trading strategies but gives no formula, parameter calibration method, market examples, or performance evidence. It is therefore a conceptual description rather than a complete implementation or tested strategy. The choice of threshold determines how sensitively the indicator responds to reversals, and the document does not establish which setting is suitable for a particular instrument or timeframe.

Key ideas

• The indicator accumulates moving-average movement relative to a chosen threshold.
• A lower threshold identifies smaller and more reactive trends.
• A higher threshold creates broader trends that can persist through minor price divergences.
• The document provides no testing evidence or guidance for selecting a threshold.

Tags

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