Trend Function Moving-Average Lines and MAVL Momentum Display
Summary
The Trend Function combines simple moving averages with periods of 8, 13, 21, 34, 55, and 64 into three lines intended to represent longer, medium, and faster price behavior. Their spacing is used to interpret volatility and trend strength: the author describes price moving away from the fast line as a sign of stronger trend. A fourth line, formed from two of the trend lines, is presented as a directional confirmation and possible crossing-based entry reference. A fifth line combines Hull moving averages and is meant to flag corrections or weakness before a possible resumption of the prior trend.
The companion MAVL histogram tracks differences among the averaged lines. Its colors distinguish positive or negative readings and whether those readings are rising or falling, which the author interprets as acceleration or deceleration. The document recommends checking multiple timeframes, while explicitly cautioning that moving-average calculations lag and should support decisions rather than provide certainty. It supplies indicator formulas and interpretation, but no backtest, market comparison, or defined risk rules.
Key ideas
- The Trend Function aggregates moving averages across six stated periods into three lines of different speeds.
- Line spacing and price distance from the fast line are used to assess volatility and trend strength.
- A fourth line provides directional confirmation and is described as a possible crossing reference for entries.
- The Hull-average line is intended to highlight corrections and potential loss of trend strength.
- MAVL colors encode the sign and change in averaged-line deviations as acceleration or deceleration cues.
- The author notes that the moving-average indicators lag and should be treated as decision aids.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.