Gaus_MA Trend Strength Dots Based on Standard Deviation

Summary

This document describes an indicator that adds a trend-strength display to the Gaus_MA moving average. It uses the standard deviation of the indicator and two user-set thresholds to classify the reading. When standard deviation lies between the thresholds, a small dot appears on the moving average in the color associated with the current trend direction. When it exceeds the higher threshold, the dot becomes larger. No dot represents the weakest state.

The display therefore communicates three levels—weak, medium, and strong—alongside trend direction. The document provides example threshold settings but does not define how the standard deviation is calculated, specify the instrument or timeframe, or show performance evidence. The dots are a visual classification aid; the description alone does not establish that they predict future returns or identify profitable entries and exits.

Key ideas

• The indicator overlays trend-strength dots on the Gaus_MA moving average.
• Dot color corresponds to the current trend direction.
• The standard deviation is compared with two thresholds to determine whether a dot appears and how large it is.
• No dot, a small dot, and a large dot represent weak, medium, and strong readings.
• The document gives no evidence that the indicator improves trading performance.

Tags

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