Trendilo: ALMA Trend Signals with RMS Bands
Summary
Trendilo turns changes in a selected price series into a smoothed trend signal. It computes percentage change over a configurable interval, applies an Arnaud Legoux moving average (ALMA), and compares that value with positive and negative root mean square (RMS) bands. Readings above the upper band indicate an upward state, readings below the lower band indicate a downward state, and readings between them are classified as sideways. The indicator can color its line and chart bars by state and optionally shade the band area.
The document supplies an indicator formula and parameter defaults, but no historical tests, market examples, or evidence of predictive performance. The bands are calculated from recent squared ALMA values, so they are a thresholding device rather than proof of expected future price movement. The description suggests possible reversal spotting, but it does not define a separate reversal rule or explain how to trade or manage risk around the signals.
Key ideas
- The indicator smooths price percentage changes with an Arnaud Legoux moving average.
- It classifies direction by comparing the smoothed signal with positive and negative RMS thresholds.
- A signal inside the bands is treated as sideways, while band crossings determine the displayed trend state.
- Coloring and optional chart shading make the state easier to inspect visually.
- The document provides no backtest or evidence that the indicator predicts returns.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.