Carbon Double WAM: Comparing Short and Long Trend Cycles

Summary

This document describes a ProRealTime adaptation of the Carbon Double WAM indicator. It calculates two smoothed measures from closing prices, using primary periods of 21 and 3, and plots each measure alongside its inverse. The longer-period line is intended to show the prevailing bullish or bearish state, while the shorter-period line is intended to flag possible trend changes sooner. Crossings between the two periods are presented as a way to compare the cycles.

The document gives indicator settings and implementation code, but provides no chart examples, rules for interpreting specific crossings, or performance tests. It therefore explains how the indicator is constructed and its intended use, without establishing that its signals predict reversals or produce profitable trades. The color scheme distinguishes the short and long measures and their inverses; users would need to confirm how those plotted series correspond to their platform display.

Key ideas

• The indicator compares smoothed price-cycle measures built with primary periods of 21 and 3.
• The short-period measure is intended to react earlier to possible trend changes.
• The longer-period measure is intended to reflect the prevailing trend for more of its duration.
• Crossings between the short and long measures can be used to compare their directional states.
• The document supplies implementation settings but no empirical validation of trading performance.

Tags

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