Classifying Trend Strength with a BSI and LWMA Indicator

Summary

The indicator combines a BSI value with a linearly weighted moving average to classify the current trend. It presents five visual states, ranging from a strong upward condition through a neutral state to a strong downward condition, with intermediate bullish and bearish categories.

The description identifies the display colors and notes that the BSI indicator appears in a separate chart window. It does not define the BSI calculation, explain how the moving average affects classification, or specify thresholds, markets, or timeframes. No trading rules, testing results, or risk controls are included, so the display is best understood as a visual trend classification tool whose signals require further definition and evaluation.

Key ideas

• The indicator combines BSI with a linearly weighted moving average to represent trend conditions.
• It displays five states from upward to downward, including bullish, neutral, and bearish intermediate states.
• Colors distinguish the trend classifications on the chart.
• The description does not provide formulas, thresholds, or evidence about signal performance.

Tags

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