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Trend Strength Levels from Standard Deviation of a Smoothed Derivative

Article MQL5 code base
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Summary

This indicator adds a trend-strength display to a smoothed Derivative indicator. It measures the indicator’s standard deviation and marks the moving average with colored dots that reflect the current trend direction. Two thresholds divide the display into three states: no dots for weak strength, small dots for medium strength, and larger dots for strong strength.

The document explains the threshold-based visual rule and names the supporting smoothing library, but gives no trading entry or exit rules and no test results. It therefore describes a way to classify and visualize trend strength, not evidence that the classification predicts returns or improves a trading strategy. The threshold values are inputs, and the text does not discuss their calibration or robustness across markets.

Key ideas

  • The indicator uses standard deviation of a smoothed Derivative series to classify trend strength.
  • Colored dots on the moving average show the direction of the current trend.
  • No dots, small dots, and larger dots represent weak, medium, and strong readings.
  • The document supplies no performance testing or guidance for selecting robust threshold values.

Tags

Technical indicatorsStatisticsTrend following

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