ColorXdinMA Trend Strength Dots Using Standard Deviation

Summary

ColorXdinMA_StDev is a moving-average indicator that adds colored dots to communicate trend direction and relative trend strength. It measures the standard deviation of the ColorXdinMA indicator and compares that value with two configurable thresholds. When the value falls between the thresholds, a small dot appears in the color corresponding to the current trend direction. When it exceeds the higher threshold, the dot becomes larger. No dots indicate the weakest state, small dots indicate medium strength, and large dots indicate strong strength.

The document gives example threshold settings of 1.5 and 2.5, but does not explain how those values were calibrated or provide performance results. The display is therefore a signal visualization rather than evidence that a trend will continue. It also depends on a supporting smoothing-algorithm library, which must be available to use the indicator in its stated platform context.

Key ideas

• The indicator uses standard deviation of ColorXdinMA to classify trend strength.
• Dot color represents the current trend direction.
• No dot, a small dot, and a large dot represent weak, medium, and strong readings respectively.
• Two configurable thresholds separate the strength categories.
• The note supplies no validation results or guidance for calibrating the thresholds.

Tags

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