Color HMA Trend Strength Using Standard Deviation

Summary

This document explains a Color Hull Moving Average 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 colored dot on the moving average; the dot color shows trend direction. When the value exceeds the higher threshold, the dot grows larger. No dots indicate weak strength, small dots indicate medium strength, and large dots indicate strong strength.

The description gives the two threshold parameters and identifies a supporting smoothing library, but it provides no market, timeframe, signal rules, or performance results. The dot scale is a visual classification of indicator behavior, not evidence that a trend will persist or that a trading strategy is profitable. The excerpt also does not explain how the standard deviation is normalized or calibrated across instruments, so users cannot infer that the stated thresholds transfer directly to other markets or settings.

Key ideas

• The indicator combines a Hull Moving Average with a standard deviation based trend-strength display.
• Small colored dots appear when standard deviation lies between two configured thresholds.
• A larger dot marks readings above the higher threshold, while no dot represents weak strength.
• Dot color indicates the current direction of the trend.
• The description gives no strategy test or evidence that the visual classifications predict returns.

Tags

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