Calculating the William Blau Trend Momentum Indicator
Summary
The document describes a William Blau trend momentum indicator with one input, a calculation period. For each bar, it compares the current high with the high from that many bars earlier, and the earlier low with the current low. Negative values in either comparison are set to zero; the indicator is then the first adjusted value minus the second. This construction focuses on directional changes in highs and lows over the selected interval.
The material supplies a formula but no worked example, interpretation thresholds, entry or exit rules, parameter guidance, or performance evidence. As a result, it explains how the indicator is calculated but not how it should be used in a trading system. The description is a translated code summary, and readers would need to verify the implementation and decide how to test the measure in their own market and timeframe.
Key ideas
- The indicator uses a single lookback period as its input.
- It compares current highs and lows with their values one period earlier.
- Negative high and low differences are floored at zero before subtraction.
- The document provides no trading rules or evidence of strategy performance.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.