Standard-Deviation Trend Envelopes with Smoothed Price Inputs

Summary

This brief description explains a trend-envelope indicator that uses price changes to decide whether a trend has changed or should continue. In this variant, standard deviation replaces a fixed percentage as the basis for measuring price change, and price data is smoothed before the calculation. The stated purpose of the envelope is to identify trend transitions from the resulting measure.

Smoothing can use a simple, exponential, smoothed, or linear weighted moving average. The description does not specify the standard-deviation window, envelope formula, threshold, price-change convention, or how signals are interpreted in practice. It also supplies no chart examples, comparisons, backtest, or trading results. Readers can learn the indicator’s broad construction choices, but cannot reproduce a precise implementation or assess its reliability from this text alone.

Key ideas

• The indicator uses standard deviation of price changes to help identify trend changes.
• Price data is smoothed before it enters the calculations.
• Four smoothing choices are listed: simple, exponential, smoothed, and linear weighted averages.
• The description omits the calculation parameters and provides no evidence of trading performance.

Tags

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