Trend Interruption Average Measures Streak Lengths
Summary
Trend Interruption Average summarizes the lengths of consecutive rising and falling closing-price sequences. It maintains an up counter that increases when the current close exceeds the previous close and resets when the close falls. A down counter behaves in the opposite way, increasing during consecutive declines and resetting on a rise.
The indicator applies a selected moving-average method over a chosen period to each counter, then displays the averaged up streak, averaged down streak, and their difference. The difference offers a compact comparison of recent rising and falling run lengths. The description specifies the calculation but gives no thresholds, trading rules, market examples, or testing results. It therefore explains an indicator’s construction rather than establishing how its readings should be interpreted or whether they predict returns; users would need to define and evaluate any signal rules themselves.
Key ideas
- The indicator counts consecutive higher and lower closing prices separately.
- A rising close increments the up counter and resets the down counter.
- A falling close increments the down counter and resets the up counter.
- It smooths both counters and reports their difference as a third series.
- The description provides no trading rules or evidence of predictive performance.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.