Building Low-Frequency Price and Directional Movement Indicators

Summary

This note describes three technical indicators for low-frequency analysis. The BBI is the average of simple moving averages over 3, 6, 12, and 24 days. A second measure, labeled DMI moving-average difference, takes the 10-day moving average minus the 50-day moving average and then applies another moving average; the final smoothing period is not specified.

The third indicator is described as a directional movement and ADX-style calculation. It defines upward and downward movement from changes in daily highs and lows, computes true range from the high-low range and gaps relative to the previous close, and smooths the directional components over 14 days. It then forms positive and negative directional indicators and applies a 6-day moving average, which the note says can be adjusted. The page supplies formulas rather than a complete strategy, source code, or performance evidence. It does not fully specify the final ADX calculation or trading rules, so implementation details and any use as a signal require further definition and testing.

Key ideas

• BBI averages the 3-day, 6-day, 12-day, and 24-day moving averages.
• The described DMI moving-average difference subtracts a 50-day average from a 10-day average and smooths the result.
• Directional movement is derived from changes in daily highs and lows.
• True range includes the daily range and gaps relative to the previous close.
• The note gives indicator construction details but no entry rules or performance results.

Tags

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