U Trend Sensor: Percent-Step Triangular Averages for Trend Detection
Summary
The U Trend Sensor is an oscillator built from two triangular moving averages with different lookback periods. Each average is updated only when it moves beyond a percentage threshold relative to its current level, creating step-like series. The indicator subtracts the slower series from the faster one and smooths the difference with an exponential average. Values above zero are interpreted as bullish, and values below zero as bearish. A separate simple moving average of the oscillator can provide earlier crossover signals, and the signal line can be disabled.
The document gives example settings for a DAX two-hour chart, including distinct periods and percentage thresholds for the two averages, plus smoothing periods. It provides no backtest, performance evidence, or rules for entries, exits, or risk. Since its step thresholds are based on percentage price changes, the author advises adapting them to the instrument and timeframe. The indicator’s trend interpretation and crossover signals are therefore descriptive rules, not evidence of a profitable strategy.
Key ideas
- Two triangular moving averages are converted into thresholded step series before they are compared.
- The difference between the faster and slower series is exponentially smoothed into the oscillator.
- Positive and negative oscillator values are interpreted as bullish and bearish trend conditions.
- A moving average of the oscillator can be used as a signal line for crossovers.
- Percentage thresholds and periods may need adjustment across instruments and timeframes.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.