NonLag Moving Average Trend Coloring and Direction Changes
Summary
This document describes a NonLag moving average whose line color indicates its estimated trend direction. Green marks an upward trend, red a downward trend, and yellow a bar on which the direction has just changed. The method derives the moving-average value from a weighted calculation of prior prices, with parameters for length, filtering, deviation, and color display.
The direction state is assigned by comparing consecutive moving-average values against a filter threshold. A change in that state produces the transition color, making shifts visible on the chart. The text presents an indicator implementation and identifies it as a colored variant of a related trend indicator, but supplies no trading rules, market examples, backtest, or evidence that its “no lag” characterization holds in practice. The colors therefore describe the indicator’s computed state; they are not validated signals or guarantees of future direction.
Key ideas
- The indicator colors its moving-average line to show upward, downward, and newly changed trend states.
- Trend direction is inferred from the change between consecutive moving-average values.
- A filter parameter can suppress small changes, while length and deviation affect the calculation.
- The document gives implementation logic but no evidence of trading performance or predictive accuracy.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.