Market Meanness Index for Distinguishing Trends from Random Markets
Summary
The Market Meanness Index is described as an indicator for classifying the market state as trending or random, with “random” used to describe chaotic conditions. The document identifies three inputs: a calculation period, a boundary above which the market is treated as lacking a clear trend, and a trend threshold below which the market is considered trend-prone. These settings define how the indicator distinguishes the two regimes.
The description does not explain the calculation, provide example readings, specify instrument or timeframe, or report tests of the classification’s accuracy. It therefore offers a basic account of the indicator’s intended use and adjustable thresholds, but not enough detail to reproduce it or establish whether its readings support a profitable strategy. Results would need to be assessed against the chosen market and trading rules.
Key ideas
- The indicator is intended to distinguish trending conditions from random or chaotic conditions.
- Its calculation uses a configurable period.
- A random boundary marks readings associated with markets lacking a clear trend.
- A separate trend threshold marks readings associated with trend-prone markets.
- The document gives no calculation method or performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.