Scoring Wilder Indicators to Classify Bullish and Bearish Trends

Summary

This indicator system assigns a score to bullish or bearish market conditions using ADX, directional indicators, Parabolic SAR, moving averages, and RSI. ADX above a threshold establishes a minimum trend-strength condition; the other signals check price relative to SAR, the direction of DI, the relationship between a short simple average and a longer exponential average, and whether RSI is within a broad range. The score rises as more conditions align, with higher levels described as tradeable trends and lower levels as reasons to avoid or monitor the market.

The document provides rules and indicator settings, but no market, timeframe, backtest, or performance evidence. Its scoring logic is a threshold-based filter rather than a demonstrated predictive model. The RSI bounds are used differently for bullish and bearish cases, and the score-zero outcome is not part of the stated one-to-five interpretation. Traders would need to validate the signals, parameter choices, and execution rules for their own instruments and data.

Key ideas

• The system combines ADX, directional indicators, Parabolic SAR, moving averages, and RSI to assess trend conditions.
• It assigns higher scores when more bullish or bearish criteria are simultaneously met.
• A minimum ADX threshold can produce a low score even when directional signals are absent.
• The document supplies indicator rules but no backtest or evidence of trading performance.
• The score bands describe whether to avoid, monitor, or trade, but do not specify position sizing or exits.

Tags

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