Scoring Trend Strength with Ichimoku, ADX, Directional Indicators, and RSI

Summary

This indicator assigns a score from zero to eight using a sequence of conditions for bullish and bearish trends. The conditions combine ADX strength, positive or negative directional movement, price relative to Parabolic SAR, Ichimoku Tenkan and Kijun lines, a displaced closing-price comparison, and RSI boundaries. For bullish setups, the score rises as more trend conditions are met; a mirrored set of rules evaluates bearish setups. The author describes scores below five as unsuitable for trading and five or higher as a potential trend trade, with higher levels indicating stronger confirmation.

The document explains that this version replaces EMA conditions with Ichimoku lines and adds the Chikou comparison and RSI limits. It also mentions a 14-day moving average in an accompanying chart, though that average is not part of the scoring rules shown. No market, timeframe, backtest, or outcome data is supplied. The thresholds are presented as configurable indicator rules, not validated evidence of profitability, and several conditions overlap because they use related trend-strength inputs.

Key ideas

• The indicator scores trend conditions on a zero-to-eight scale for both bullish and bearish directions.
• Its inputs include ADX, directional movement, Parabolic SAR, Ichimoku lines, a lagged price comparison, and RSI.
• The author treats scores of five or above as potential trend signals.
• The document provides rules but no backtest or evidence that the score predicts profitable trades.

Tags

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