A Three-Horizon EMA Market Condition Score

Summary

This indicator gauges market conditions with three horizons based on exponential averages of highs and lows over 50, 100, and 200 periods. For each horizon, it compares a supplied closing price with the prior period’s averages, selects one of those averages as a threshold, and then checks whether the current close is above that threshold. The three binary checks are added to produce a score from zero to three; the document describes the highest score as a strong bull-market reading without a correction.

The material provides the indicator’s rules but no chart examples, backtest, or evidence that the score predicts future returns. It also leaves the meaning and source of the custom closing-price input unclear, and its threshold-selection logic can yield an undefined value when price lies between the high and low averages. Treat the score as a descriptive technical condition measure, not a validated trading signal.

Key ideas

• The indicator evaluates price against EMA-based thresholds at three lookback horizons.
• Each horizon contributes either zero or one point according to whether the close exceeds its selected threshold.
• The combined score ranges from zero to three and summarizes agreement across the horizons.
• The document provides no performance testing or evidence of predictive value.

Tags

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