Average Slope Indicator for Tracking Trend Direction

Summary

This brief note describes an indicator that tracks the slope of a selected type of moving average. Its value becomes progressively steeper while the average continues moving in one direction. When the slope changes direction, the indicator resets the step used to build that steeper reading, so the value becomes less steep as the new move develops.

The suggested use is to treat a change in the indicator's color as a signal. The document does not specify the average type, calculation details, parameters, asset class, or rules for entering and exiting trades. It supplies no chart, backtest, or performance evidence, so the color change should be understood as a basic trend cue rather than a validated standalone strategy. Its usefulness depends on how it is configured and tested against the market and timeframe where it will be applied.

Key ideas

• The indicator measures the slope of a chosen moving average.
• A continuing slope in one direction makes the indicator reading progressively steeper.
• A change in slope resets the step and reduces the indicator's steepness.
• The note suggests using color changes as signals but gives no parameter details or performance evidence.

Tags

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