Color-Coded XMA Ichimoku Trend Strength from Standard Deviation

Summary

This document describes an XMA Ichimoku indicator that adds a visual estimate of trend strength using standard deviation. When the indicator’s standard deviation falls between two configured thresholds, it displays a small dot on the moving average; the dot color shows the trend direction. If the reading exceeds the higher threshold, the dot becomes larger. The display thus distinguishes weak conditions, shown without dots, from medium and strong conditions, shown with small and large dots.

The threshold inputs are called dK1 and dK2, and the indicator depends on an additional smoothing library for installation. The text explains the visual encoding but does not define the standard deviation calculation, its normalization, or how dot levels should translate into trade decisions. No backtest or evidence of predictive value is provided, so the strength display is best understood as a descriptive filter requiring independent evaluation.

Key ideas

• The indicator adds standard-deviation-based trend strength to an XMA Ichimoku moving average.
• Dot color represents the current trend direction.
• No dot, a small dot, and a large dot mark weak, medium, and strong readings respectively.
• Two configurable thresholds determine when dots appear and when their size increases.
• The document offers no trading rules or performance evidence for the visual signal.

Tags

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