NonLagDot Trend Indicator Using a Weighted Moving Average
Summary
The document describes NonLagDot, a chart indicator intended to represent the prevailing direction of market pressure. It displays bullish conditions with green dots and bearish conditions with red dots, and says the returned values should be plotted as points. Its included calculation forms a weighted average of past prices: weights vary with a cosine function and a time-dependent factor, while a length parameter determines the calculation window. Optional deviation and filtering parameters adjust the output or suppress small changes.
The page provides a ProRealTime conversion of an indicator originally associated with MetaTrader 4, but gives no performance tests, comparison with other trend measures, or rules for entering and exiting trades. The color interpretation is described, yet the supplied calculation returns a smoothed price value and does not itself establish how bullish and bearish states are classified. Traders would need to validate the settings and signal behavior for their instrument and timeframe before relying on it.
Key ideas
- NonLagDot presents trend direction on a chart using differently colored points.
- Its calculation smooths historical prices with weights that vary over the lookback sequence.
- Length, deviation, and filter parameters affect the indicator output.
- The page gives no empirical evidence that the indicator predicts returns or improves trading results.
- The supplied description does not fully explain how the returned values map to bullish and bearish states.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.