Using Crosses Between Deviation-Scaled Moving Averages

Summary

The document introduces a trading indicator built from crosses between two deviation-scaled moving averages (DSMAs). It attributes the underlying DSMA concept and the paired-cross idea to an article by John Ehlers published in TASC in July 2018. The suggested system uses the two averages together, implying that their cross is the operative signal.

The text does not explain how to calculate either average, choose its parameters, interpret bullish or bearish crosses, or manage entries and exits. It supplies no chart, market example, backtest, or performance evidence, so the usefulness of the signal cannot be assessed from this description alone. It is best read as a pointer to the indicator concept and its cited source, rather than a complete or tested strategy. Any implementation would need the original formula and independent evaluation across relevant markets and time periods.

Key ideas

• The indicator system uses crosses between two deviation-scaled moving averages.
• The document attributes the DSMA method and paired-cross concept to a 2018 TASC article by John Ehlers.
• It does not provide formulas, parameter choices, or rules for interpreting the crosses.
• No examples or performance results are included, so the signal is not validated here.

Tags

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