Revising the Trend Analysis Index with Adaptive Levels and Adjusted Calculations

Summary

This document presents a revised Trend Analysis Index (TAI), originally described by Adam White as an indicator for trade entries. It argues that the original moving-average-difference approach is unreliable across symbols and timeframes because fixed thresholds do not adapt to changing value ranges. It also says the original calculation can sometimes indicate rising values in falling markets, or the reverse.

The revision introduces floating levels that adapt to indicator values and changes the calculation, with the aim of making readings more usable. The author suggests using color changes for entries, re-entries, and exits. No backtest results, parameter details, or quantitative comparison are supplied, and the author acknowledges that the indicator is imperfect and recommends experimentation. Its claimed improvement therefore remains an assertion in the document rather than demonstrated performance evidence.

Key ideas

• The original TAI is criticized for using fixed thresholds across symbols and timeframes.
• The revision uses adaptive floating levels and modifies the calculation.
• Color changes are proposed as possible entry, re-entry, and exit signals.
• The document supplies no quantitative tests and advises experimentation.

Tags

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