ColorJFatl Trend Strength Levels from Standard Deviation

Summary

This document describes an indicator that adds a three-level trend-strength display to ColorJFatl. It uses the standard deviation of the indicator and two configurable thresholds to show colored dots on its moving average. A small dot signals a medium strength reading, while a larger dot marks a reading above the higher threshold; no dot represents weak strength. Dot color follows the current trend direction.

The description explains how the thresholds control the visual signal, but gives no performance tests, trading rules, or guidance for choosing threshold values. It also notes that the implementation depends on an external smoothing library. The indicator can help traders distinguish trend direction from its measured strength, but the document does not establish that the display predicts future prices or improves trading results.

Key ideas

• The indicator estimates trend strength from the standard deviation of ColorJFatl.
• Two configurable thresholds separate medium and strong readings.
• Dot color shows trend direction, while dot size distinguishes strength levels.
• The document provides no backtest or evidence that the signals are profitable.

Tags

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