A Smoothed, Directional Trend Continuation Factor Indicator
Summary
This indicator description presents a modified Trend Continuation Factor inspired by M. H. Pee’s work on estimating how long trends may continue. Its stated aim is to identify both the presence and direction of a trend, since trading against a persistent move can lead to losses. The described version differs from the referenced original by smoothing prices first to reduce repeated false signals and changing the calculation to produce a directional output.
The suggested use is to treat changes in the indicator’s color as signals. The text provides no formula, chart, parameter settings, test results, or comparison with the original method, so it is not enough to reproduce or assess the indicator. Its claims about reducing false signals and aiding decisions are not supported with performance evidence, and users would need a complete specification and testing before evaluating it in a trading system.
Key ideas
- The indicator is inspired by prior work on measuring trend continuation.
- It adds price smoothing to try to reduce repeated false signals.
- Its calculation is modified to produce a directional reading, unlike the referenced original approach.
- Color changes are proposed as signals, but the description gives no formula or performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.