Three Generalized DEMA Levels and Adaptive Trend Signals in T3
Summary
The document explains three nested levels related to Tim Tillson’s T3 indicator: generalized DEMA, generalized DEMA applied twice, and generalized DEMA applied three times, which produces T3. The described indicator allows the user to choose which level to display, making it a configurable view of these related calculations.
It also uses self-adjusting levels to identify trend direction. Rather than interpreting changes in the indicator’s slope, it treats level crossings as direction signals, with the stated aim of filtering out smaller slope changes that may create false signals. Users can treat changes in displayed color as signals. The document provides no formula for the adaptive levels, parameter guidance, market examples with outcomes, or backtest evidence, so it does not show whether this filtering improves results in practice.
Key ideas
- The indicator presents three nested generalized DEMA calculations, with the third corresponding to T3.
- Users can select which of the three levels to display.
- Adaptive level crossings indicate trend direction instead of relying on slope changes.
- Color changes can be used as signals, but the document gives no performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.