Triple DSEMA Trend Indicator for Direction and Ranging Zones

Summary

The document presents a variation of a “triple” indicator that replaces the Hull Moving Average with a double-smoothed exponential moving average (DSEMA). The stated motivation is to avoid overshooting that can occur with the Hull average, while retaining a smooth filter. The indicator compares three averages calculated from high, low, and close values to assess overall trend direction and identify a ranging zone.

A range is described as occurring when price lies between the high-based and low-based averages. The text offers a design rationale, but no formula, parameters, chart examples, or empirical tests to show how reliably DSEMA avoids overshoot or how well the signal performs. It therefore explains the indicator’s intended construction and interpretation, while leaving implementation details and trading rules unspecified.

Key ideas

• The indicator substitutes double-smoothed EMA for Hull Moving Average in a triple-indicator design.
• The stated goal is to reduce overshooting while keeping the average smooth.
• It uses averages of high, low, and close to assess trend direction.
• Price between the high and low averages is treated as a ranging zone.
• The document provides no parameter values or performance evidence.

Tags

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