Trend Trigger Factor with Pre-Filtered Price Averages

Summary

This indicator applies a moving average to prices before calculating the Trend Trigger Factor, an approach the document presents as an alternative to smoothing the indicator output. Its stated aim is to reduce the extra lag associated with smoothing after calculation while filtering price data that may contribute to false break signals.

The input can be filtered with a simple, exponential, smoothed, or linear weighted moving average. The document says traders can use changes in the indicator’s color as signals. It attributes the underlying Trend Trigger Factor to M. H. Pee’s 2004 magazine article, but provides no formula, parameter guidance, examples, backtest, or performance evidence. It therefore describes the indicator’s setup and intended use without establishing whether the pre-filtering approach improves signal quality or trading results. Any use would require testing suitable settings and signal rules for the instrument and timeframe being traded.

Key ideas

• The indicator filters prices with a moving average before calculating the Trend Trigger Factor.
• This design is intended to add less lag than smoothing the calculated indicator output.
• The available filters are simple, exponential, smoothed, and linear weighted moving averages.
• Color changes are suggested as potential trading signals.
• The document gives no performance evidence or detailed trading rules.

Tags

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