Trend Speed Analyzer: Adaptive Trend Detection and Momentum Histogram

Summary

The Trend Speed Analyzer combines an adaptive exponential average on the price chart with a separate histogram intended to show the direction and intensity of trend momentum. Its average changes responsiveness using normalized price changes and an acceleration factor; the speed measure accumulates the difference between smoothed closing and opening prices, then applies a Hull average. Candle and histogram colors encode bullish or bearish direction and relative strength. The article also describes settings for the average’s maximum period, acceleration sensitivity, and the lookback used for color normalization.

Suggested uses include confirming breakouts, filtering trades against the prevailing direction, spotting momentum changes, and comparing price with the histogram for possible divergences. The document supplies indicator code and parameter defaults, but no market examples, validation, backtest, or evidence that its signals predict returns. The formulas and color interpretation are presented descriptively, so traders would need to verify implementation details and test the indicator on their own instruments and timeframes.

Key ideas

• The indicator pairs an adaptive moving average with a smoothed histogram of accumulated price movement.
• A volatility-sensitive length and acceleration factor adjust the average’s responsiveness.
• Histogram sign represents bullish or bearish momentum, while distance from zero is presented as strength.
• The suggested uses include breakout confirmation, trend filtering, reversal monitoring, and divergence checks.
• The article provides code and defaults but no empirical performance validation.

Tags

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