Measuring Moving-Average Slope with a Threshold-Based Color Indicator

Summary

The MA_Slope indicator represents the direction and strength of a moving average by comparing its current value with a value from a specified number of bars earlier. The user selects the moving-average period, calculation method, applied price, slope threshold, and comparison length. The difference between the two moving-average values determines the displayed color: green when it exceeds the positive threshold, red when it falls below the negative threshold, and gray when it remains between those limits.

This provides a visual way to distinguish stronger upward and downward slopes from smaller changes, with the threshold and lookback length controlling sensitivity. The document explains the indicator’s inputs and calculation but gives no trading rules, test results, or evidence that color changes predict future returns. It also does not specify how to handle the current, potentially unfinished bar, so users should check the implementation’s timing behavior before interpreting live signals. The indicator is a descriptive trend measure rather than a complete strategy.

Key ideas

• The indicator estimates moving-average slope by comparing its current value with a past value.
• The lookback length sets how many bars separate the two moving-average observations.
• A positive threshold crossing is shown in green and a negative crossing in red.
• Values between the two thresholds are shown in gray.
• The indicator defines no entry or exit rules and is not supported by performance evidence.

Tags

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