A Three-Condition Moving Average and Price Trend Signal
Summary
This indicator displays a colored histogram for buying, selling, or neutral conditions, with markers showing changes or completion of a trend. A buy signal requires the latest close to exceed a 10-day moving average, that average to be higher than its value ten days earlier, and the latest close to exceed the close from 40 days earlier. Selling uses the opposite conditions. The indicator exposes a general moving-average period and two range periods, with defaults of 10 and 40 days for the ranges.
The rules combine short-term price position, moving-average direction, and a longer lookback comparison to define a simple trend-following signal. The document explains the construction but supplies no test results, asset-specific guidance, exit or position-sizing rules, or evidence that the signals predict returns after costs. The histogram is a visualization of the conditions rather than evidence of profitability.
Key ideas
- A buy signal requires price above a short moving average, a rising average, and price above its longer-term comparison point.
- The sell signal applies the opposite conditions.
- A histogram and markers visualize directional state and trend changes.
- No performance testing, execution guidance, or risk-management method is provided.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.