Trend Direction from the Cosine of Price-Change Angles

Summary

The Dots indicator displays the inferred trend direction as colored markers on a price chart: blue for an uptrend and red for a downtrend. Its calculation is described as using the cosine of a price-change angle rather than standard MetaTrader indicators. Users can adjust the smoothing depth, a filter intended to suppress price surges without adding display lag, the applied price, and horizontal or vertical shifts.

The document gives no formula, chart-based evaluation, or evidence that the indicator predicts future returns. It also does not define how its parameters should be selected or explain how the filter behaves across markets and timeframes. The indicator therefore offers a visual trend classification concept, but the description alone is insufficient to assess its reliability or use it as a complete trading strategy.

Key ideas

• The indicator marks uptrends in blue and downtrends in red.
• Its calculation uses the cosine of an angle derived from price changes.
• Settings control smoothing, surge filtering, input price, and chart shifts.
• The description provides no predictive tests or trading rules.

Tags

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