Trend Detection Index: Reading Smoothed Trend Direction

Summary

The document describes a modified Trend Detection Index indicator intended to distinguish established rising and falling trends. Its main visual rule is that the purple line sits above the red line during a steady upward trend, while the ordering reverses during a strong decline. This offers a simple way to interpret the indicator’s two lines as a directional signal.

The text says the indicator was first implemented in MQL4 and published in 2007, and notes that its implementation uses a smoothing library. It does not provide the calculation, parameter settings, entry or exit rules, or performance evidence. The line relationship should therefore be treated as a descriptive indicator convention rather than a validated standalone trading strategy; the document gives too little detail to assess lag, false signals, or behavior across markets.

Key ideas

• The indicator is presented as a modification of the Trend Detection Index.
• A purple line above a red line is associated with a stable rising trend.
• The reverse line ordering is associated with a strong falling trend.
• The document gives no formula or 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.