Calculating the Trend Intensity Index from Price Deviations
Summary
The document outlines a 30-day Trend Intensity Index calculation attributed to M. H. Pee. First, compute a 60-day simple moving average from closing prices. Then compare each of the latest 30 closes with that average and record the size of each deviation, separating closes above the average from those below it. The index is intended to express the proportion of deviation that is upward or downward.
This is a concise description of an indicator construction, not a complete trading rule. It does not specify a formula for weighting or normalizing the deviations, thresholds for interpreting the result, or entry and exit conditions. No market example, performance evidence, or limitations beyond the missing implementation details are provided, so the text supports understanding the basic calculation but not evaluating its trading value.
Key ideas
- The described indicator uses a 60-day simple moving average as its reference level.
- It measures deviations for the most recent 30 closing prices.
- Closes above and below the average contribute upward and downward deviations, respectively.
- The description does not provide signal thresholds, a full formula, or performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.