Flat Indicator for Volatility and Trend-Strength States
Summary
The Flat indicator is described as a tool for measuring market volatility and displaying conditions through colored dots. Red dots mark strong trends, gray dots mark weak trends, and blue dots indicate moderate trends. Its inputs include a smoothing period and moving-average method, an applied price, a reference setting, and configurable levels and display styling.
The supplied description lists threshold values for weak, strong, and strongest conditions, but does not explain the underlying volatility formula or precisely how the readings are calculated. It offers no chart-based examples, backtest, or evidence that the color states forecast returns or identify profitable entries. The indicator was originally written for an earlier platform version and later adapted, which may matter when assessing implementation details. Treat its colors as a visual classification aid; the document does not present a complete trading system or validation results.
Key ideas
- The indicator classifies market conditions using colored dots associated with trend strength.
- Its settings allow the user to adjust smoothing, price input, thresholds, and visual presentation.
- The document does not describe the volatility calculation in enough detail to reproduce or assess it.
- No trading rules or performance evidence are provided.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.