Standard-Deviation Trend Envelopes with Smoothed Multi-Timeframe Averages
Summary
This document describes a trend-envelope indicator that uses standard deviation of price changes to determine whether a trend is new or continuing. It differs from a basic percentage-change approach by applying price smoothing before the calculation. Users can choose among simple, exponential, smoothed, and linear weighted moving averages.
The indicator supports MetaTrader 5 timeframes, including two special settings defined relative to the active chart: the second higher timeframe and the third higher timeframe. The text outlines the calculation concept and configuration options, but gives no entry or exit rules, parameter values, performance results, or examples. It therefore explains an indicator design rather than a complete trading system; its effectiveness and suitability would need separate evaluation.
Key ideas
- The indicator uses standard deviation of price changes to identify trend changes or continuation.
- Price smoothing is applied before the trend calculation.
- Four moving-average types are available for smoothing.
- The indicator supports multiple MetaTrader 5 timeframes, including higher-timeframe options relative to the chart.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.