Scoring Trend Strength with Equal and Weighted Conditions

Summary

This document describes a method for turning a set of conditions associated with an ideal uptrend or downtrend into a trend-strength percentage. Each condition that holds earns a point; the total is divided by the maximum possible score and expressed as a percentage. The score is intended to represent how closely observed price behavior matches the chosen ideal trend pattern. A second version gives conditions unequal importance, with more important conditions assigned larger weights using powers of two. The document says this changes how ratings are accumulated while retaining the general percentage-based output. It refers to two indicator-function implementations but does not list the underlying trend conditions in the text, provide sample calculations, or report validation against market data. The score is therefore a configurable technical-indicator concept, not evidence of predictive performance; its usefulness depends on how the trend conditions and their weights are defined and tested.

Key ideas

• The method scores a trend by counting which predefined trend conditions are satisfied.
• The basic score divides earned points by the maximum possible points and converts the result to a percentage.
• A weighted variant assigns greater influence to more important conditions using powers of two.
• The document does not specify the conditions or provide performance validation.

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