Asymmetric Bands Oscillator for Estimating Trend Strength

Summary

This document introduces an oscillator built from bands calculated asymmetrically, with different distances for the upper and lower bands. The resulting band measure is converted into an oscillator intended to help estimate the strength of the current trend.

The calculation can use one of four averaging methods: simple, exponential, smoothed, or linear weighted moving averages. The description does not specify the band formulas, parameters, interpretation thresholds, or how to generate trade entries and exits. It also provides no backtest or other empirical evidence, so the proposed trend-strength use should be treated as an indicator concept rather than a validated strategy.

Key ideas

• The indicator uses unequal distances for its upper and lower bands.
• The asymmetric band calculation is transformed into an oscillator.
• Four moving-average types are available: simple, exponential, smoothed, and linear weighted.
• The stated use is to estimate current trend strength.

Tags

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