Adaptive Timeframe Moving Average Periods as a Trend Signal

Summary

This indicator automatically adjusts the moving average period to the chart timeframe, aiming to represent comparable calendar intervals across charts. The document gives examples of a 12-period average on a monthly chart and a 52-period average on a weekly chart. It also describes deriving periods from daily bars for a month and relating shorter timeframes to weeks or days.

The suggested interpretation is a simple price-versus-average rule: buy when price is above the moving average and sell when it is below. The method removes the need to choose a separate period manually for each timeframe, but the text does not specify exact calculation rules for every timeframe or discuss lag, whipsaws, risk controls, transaction costs, or backtest results. It therefore describes a basic configurable trend signal, not evidence that the rule is profitable.

Key ideas

• The indicator selects a moving average period based on the chart timeframe.
• The examples use 12 periods for a monthly chart and 52 for a weekly chart.
• The stated trading rule is to buy above the average and sell below it.
• The document provides no performance evidence or risk management guidance.

Tags

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