Using DSMA Trend Strength and Color Changes as Chart Signals

Summary

This brief indicator description applies the idea of trend strength to a non-oscillator chart study. It uses Ehlers’ deviation-scaled moving average (DSMA) as the basis for a trend-strength calculation and displays both the strength value and the DSMA on the main price chart. The suggested way to use the indicator is to watch for changes in its color as potential signals.

The document provides no formula, parameter settings, entry or exit rules, example charts, or test results. It does not specify how colors map to market conditions, how the DSMA component should be interpreted, or how signals should be filtered. Color changes are therefore only a visual cue described by the author, not a fully defined or validated trading system; any practical use would require clarifying the calculation and independently evaluating it across relevant markets and timeframes.

Key ideas

• The indicator adapts a trend-strength concept for use with a non-oscillator study.
• Ehlers’ deviation-scaled moving average provides the basis for its trend-strength calculation.
• Both the trend-strength reading and the DSMA are shown on the main price chart.
• The suggested signal is a change in indicator color.
• The description gives no calculation details or evidence from testing.

Tags

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