Flat Trend Indicator Combining ADX and Parabolic SAR

Summary

Flat Trend is a market-state indicator that combines directional movement information from ADX with Parabolic SAR. It assigns one of four colors according to whether the directional movement signal and SAR each indicate an upward or downward state. The resulting display is intended to make agreement and disagreement between the two indicators visible at a glance.

The document identifies configurable settings for the SAR step, SAR maximum, and ADX period. It explains the indicator’s component logic but gives no trading rules for entries or exits, no parameter-selection guidance, and no backtest or performance evidence. The colored states therefore describe indicator readings rather than a demonstrated standalone strategy. Traders would need to define how to act on the signals and assess the indicator against their market, timeframe, and risk constraints.

Key ideas

• Flat Trend combines ADX-based directional movement with Parabolic SAR readings.
• Its four colors represent the possible combinations of upward or downward readings from the two components.
• The SAR step, SAR maximum, and ADX period can be configured.
• The document supplies no entry rules, exit rules, or performance evidence for using the indicator as a strategy.

Tags

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