Classifying Trend Strength with Standard Deviation Dots

Summary

The document describes an extension to the BWImp-T01 indicator that displays trend strength using colored dots on a moving average. Dot color indicates the current trend direction, while dot size signals the strength level.

The indicator compares the standard deviation of BWImp-T01 with two user-defined thresholds. Values between the lower and upper thresholds produce small dots; values above the upper threshold produce larger dots. Values below the lower threshold show no dot. This yields weak, medium, and strong visual categories. The document explains the threshold logic but provides no performance tests or trading rules, so it does not establish that the signals predict future price moves or how they should be used in a strategy.

Key ideas

• The indicator uses standard deviation to categorize the strength of the BWImp-T01 trend signal.
• Dot color represents trend direction, and dot size represents strength.
• Values below the lower threshold produce no dot.
• Values between the thresholds produce small dots, while values above the upper threshold produce larger dots.
• The description provides no evidence of predictive performance or a complete trading strategy.

Tags

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